A new no frills hotel operator has announced it will open its first site in the Malaysian capital Kuala Lumpur in March.

Malaysia-based Tune Hotels was founded by AirAsia group’s CEO Tony Fernandes and plans to open a network of hotels in major cities across the country – including Kota Kinabalu, Penang, Kuching and Johor Baharu.

Prices at Tune Hotels will range from RM9.99 (US$2.90, £1.50, 2 euro) to RM59.99 (US$17, £9, 13 euro) per night, depending on how early the room will be booked.

Fernandes said the company was also looking to expand the business into neighbouring countries.

Tune Hotels is hoping to benefit from the increase in foreign travellers to Malaysia and south Asia, and is targeting both the business travel as well as youth market.