Tune Hotels to expand to Liverpool and Edinburgh

Budget brand Tune Hotels is to continue its expansion in the UK with the opening of new properties in Liverpool and Edinburgh by 2013.

The group, which launched into the UK in 2010, currently has two hotels in London, in Waterloo and Liverpool Street. A further two properties - a 217-bedroom hotel in King's Cross and a 137-bedroom hotel in Paddington - are set to open before the Olympics.

Initial funding of £38m is in place to develop 15 Tune properties in the capital by 2017, through a consortium of investors who created Raag Hotels as the operating company for Tune.

The first Tune hotels outside of London will have 127 bedrooms (Liverpool) and 175 bedrooms (Edinburgh).

Tune Hotels was set up in south-east Asia in 2007 by Tony Fernandes, the Malaysian entrepreneur behind low-cost airline AirAsia, who last year bought Queen's Park Rangers football club.

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By Janet Harmer

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