Tune Group is to invest £200m into its low-cost hospitality arm Tune Hotels as part of plans to open up to 25 new properties in the UK by 2020.

The private investment group – helmed by entrepreneur and Queen’s Park Rangers Football Club owner Tony Fernandes – is eager to expand its hotel operations in the UK’s growing low-cost sector, which could serve as the springboard for a push into the European market.

Having launched in Malaysia in 2007, Tune Hotels recently opened its sixth UK site in Newcastle, following those in Edinburgh (one) and London (four). The no frills business model – similar to that of low-cost airline AirAsia that Fernandes co-founded – focuses on high quality beds and showers, with UK rooms starting from £25 a night.

“Our aim is to have a further 25 hotels across the UK in the next five years representing a significant investment of over £200 million,” said Tune Hotels Group CEO Mark Lankester.

“We will be targeting the major business cities across the UK such as London, Manchester, Birmingham and Leeds, as well as looking at key university cities where our concept has proved very popular.”

The announcement comes just months after low-cost rival easyHotel floated on London’s alternative investment market (AIM) in a bid to hasten expansion, suggesting the sector is primed for activity.