Cheap hotels chain to follow model of 'no-frills' airlines

The first of the Tune Hotels, based on the no-frills airline concept, will be launched in Westminster, London, it was announced yesterday.

Fourteen more of the hotels – dubbed a "5-star sleeping experience at a 1-star price" – will open in the Greater London area by 2017.

The 150m deal involves a partnership between Tune Hotels – part of the Tune Group – and London-based investment group Queensway.

Tune is the private investment group of Tony Fernandes, founder of low-cost airline AirAsia and team principal of the Lotus F1 motor racing team.

The hotels offer rooms at prices starting as low as 2 per night in Malaysia and Indonesia.