Fernandes secures funding for third London hotel

  • @LauraHChesters

Tony Fernandes, the boss of Air Asia and Formula One's Team Lotus team principal, has secured nearly £50m of funding to grow the UK franchise of his budget hotel chain.

Royal Bank of Scotland has agreed to provide an £8.3m development loan to Tune Group for a hotel in Paddington, the chain's third in London, adding to the £38.3m that it has raised from a variety of investors in recent months.

That money is being used to roll out 15 other Tune UK properties over the next five years. Mark Lankester, Tune's chief executive, said that hotels in Liverpool and Edinburgh are planned for 2013.