Low price hotel chain to tap into Okinawa market

The Tune Hotels, an affiliate of AirAsia, the largest of Asian low cost carriers, has cast a serious eye on Okinawa tour market, and is in the process of putting their plans to work soon. This is the first time Tune Hotels will open a hotel in Japan.

Fontz Holdings, a company that runs a music distribution business in Tokyo has reportedly agreed to purchase the Relax Hotel in Maejima, in Naha, and will run the hotel as “Tune Hotel Naha” starting a couple of months from now.

Fonz Holdings has reportedly signed a contract to buy the Relax Hotel, which is currently run by Relax Kanko Co. in Naha, within the month of May for \1,000,000,000. They would then contract an associated company to run the hotel. A spokesman for Fontz Holdings says employees currently working in the Relax Hotel need to apply for continuing to work at the Tune Hotel, and there’re no guarantees to re-hire the entire current staff. Kazunari Agarie, the president of Relax Kanko Co. says that his company will assist the employee as much as they can.

Tune Hotels opened its first hotel in Malaysia in 2007, offering low cost accommodations with minimum service that include a bed, shower and toilet, but levies a charge for air conditioning, towels and any extra services. The hotel chain has expanded to Southeast Asia.

Fonz Holdings contracted with a company in Singapore, which runs a Tune Hotel chain, and after learning from them about the concept, decided to go into the hotel field in Japan. They are aiming to expand their hotel business throughout Japan starting from Okinawa.

For more information see Fonz Holdings’s website at http://fontz.jp/ (in Japanese only). Tune Hotels can be found in English at http://www.tunehotels.com/my/en/