Tuesday, May 15, 2007

Tune Hotels set to raise RM250mil

Tune Hotels Sdn Bhd is confident of raising RM250mil in institutional property funds to develop hotels under the Tune Hotels.Com brand in South-East Asia, said director Dennis Melka.

Tune Hotels is finalising talks with local and overseas investors.

He said the “status” of the exercise would be announced soon.

The total capital raised will be used to develop hotels at all major cities in Malaysia in addition to international destinations.

Dennis Melka (centre) and managing director/executive chairman of Sagajuta (Sabah) Sdn Bhd Raymond Chan (right) with a model of the Tune Hotels.Com 1 Borneo in Sabah. On the left is Sagajuta director Tan Tiang Lai
“We think about 35 hotels could be developed with that amount of funds. However, it depends on how many rooms there are in each hotel and the location,” Melka said at a press conference to announce that Tune Hotels would launch a hotel in Kota Kinabalu.

He said the fund would be used to own Tune Hotels in South-East Asia or franchise the brand to other hotel operators.

Currently, Tune Hotels has RM18mil in shareholders fund.

The 168-room budget hotel in Kota Kinabalu will be opened in January next year at 1 Borneo Lifestyle Hypermall. To be called Tune Hotels.Com 1 Borneo, it will have an estimated development cost of RM75,000 to RM85,000 per room.

“With the central location of 1 Borneo, we foresee significant business from both locals and foreign tourists,” he said, adding that Tune Hotels also planned to open hotels in Thailand, Indonesia and Singapore by next year.

Source : STAR
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