BANGKOK: Encouraged by the rapid growth of its hotel chain in Malaysia, Tune Hotels.com has launched a strategic partnership with a Thai real estate investment advisory firm as the first step in its ambitious campaign to expand across Asia.

Tune Hotels.com yesterday signed a franchising agreement with Evolution Capital Public Company Ltd (PTL), which is listed on the Thailand Stock Exchange, to allow the latter to open 44 more of the “limited-service” hotel throughout Asia, beginning in Thailand.

Evolution Capital will be investing US$200million (RM688m), part equity and part borrowings, to use the Tune Hotels.com brand name.

The Thai firm is bullish on the budget tourism industry and is confident of recouping its investment in three to five years time, said Evolution Capital managing director and president Simon Gerovich.

Under the strategic partnership terms, the first 24 Tune Hotels.com hotels are targeted to be developed by early next year and operational by 2012 while the remainder will be completed by 2013.

It was revealed that Phuket has been identified as the location for the first of the 44 new Tune Hotels.com hotels.

The roll-out of Tune Hotels.com across Asia is also planned for other locations in Thailand, China, Bangladesh, the Philippines and as Indonesia.

Almost half of the Tune Hotels. com to be developed will be in Thailand, with Bangkok and Phuket identified as key locations, while China, Bangladesh, Philippines and Indonesia would have between five to six Tune Hotels.com hotels.

Gerovich said the 44 hotels would be set up either by refurbishing existing buildings or building new hotels. Each hotel would have between 75 to 150 rooms.

The franchise agreement was signed by Gerovich with Tune Hotels.com group chief executive officer, Mark Lankester, at the Royal Bangkok Sports Club.