Tune Hotels.Com, City e-Solutions (a listed subsidiary of CDL) and Istithmar to develop around 30 Tune Hotels

26 June 2007, Singapore: Istithmar PJSC, the investment arm of Dubai World, today announced the creation of a US$ 50 million joint venture company in Dubai to develop and own a portfolio of Tune Hotels in strategic business and tourism destinations in Southeast Asia. 

Tune Hotels.Com is a revolutionary new "no-frills" limited-service concept created by the founders of Air Asia, Tony Fernandes and Kamarudin Meranun, to address the need for affordable, quality accommodation in Southeast Asia. The rapidly growing regional economies, coupled with the exponential growth of low cost carriers, have generated an unprecedented volume of value-based travelers.

Tune Hotels.Com offers a five-star sleeping experience at a one-star price. Each Tune room includes a luxury King Koil bed with 250 thread count duvet, en-suite bathroom with Power Shower, and an electronic key card entry system in a space-efficient room of approximately 10 square meters.  Each hotel has an outsourced 24-hour convenience store, a branded food and beverage outlet, on-site 24 hour guarded security and extensive CCTV cameras throughout the public areas of the property. Tune relies on a direct-to-consumer internet-based reservation system that allows for superior inventory control and flexible, demand based pricing.

Tune's no-frills model means that certain items such as air conditioning, towels and bathroom amenities are available for small additional charges. Average room rates are approximately US$15++ but customers who make advance bookings on-line at www.tunehotels.com enjoy rates as low as US$3++.

Joe Sita, Chief Executive of Istithmar Hotels FZE, a division of Istithmar PJSC, said:

"We have been building our hotel portfolio across many different markets and I am excited that we are able to reach into the Asian budget accommodation market with this innovative, fast growing brand. It gives us an opportunity to invest in a segment that is poised for tremendous growth in the years ahead and touches on several key themes such as the increased demand for travel by the rising middle class in Asia and rapid growth of low cost carriers in the region."

Richard Johnson, Managing Director of Istithmar Real Estate, a division of Istithmar PJSC, said:

"The hotels sector is crying out for clean, safe branded budget accommodation in major cities.  The Tune Hotels.Com brand will deliver that need in destinations across Asia.

"Customers can be sure of a quality 'sleep and shower' experience, in a clean and safe environment, and can then choose which other items they want on top.  It's a really exciting model and we're looking forward to rolling it out across the region."

Dennis Melka, Director and Co-Founder of Tune Hotels.Com, said:

"We are excited about our partnership with Istithmar and City e-Solutions /CDL. They are the elite of the world's hospitality sector. Their financial support and technical expertise will enable us to rapidly grow our business across Asia and provide quality accommodation at a price everyone can afford.

"We focus on delivering certain key essentials to the customer, like five-star beds and Power Showers in safe, clean hotels, but eliminating certain "frills" like meeting rooms, swimming pools and mini-bars. Our joint venture company will take the Tune experience to key cities across the region."

Vincent Yeo, Chief Executive Officer of City e-Solutions, a listed subsidiary of CDL, said:

"This is an important deal for the region and brings a new model to the market.  We are delighted to be involved."

The first Tune Hotel opened on 27 April 2007 in the heart of Kuala Lumpur and has enjoyed 91 per cent occupancy since opening.  Additional properties are on track to be opened in Penang, Johor Bahru, Kuching and Kota Kinabalu, amongst many other locations.

The new joint venture plans around 30 properties over the next three years, in Malaysia, Indonesia, Thailand, the Philippines and Singapore.

-Ends-

Istithmar and Dubai World
Istithmar PJSC is the investment company of Dubai World.  It is 100 per cent owned by Dubai World, which is in turn wholly owned by the Government of Dubai. It has an investment portfolio which includes more than 50 successful companies. The real estate business aims to acquire and manage a distinguished and diversified portfolio of properties in commercial property, hotels and resorts, the leisure sector and in retail.  Existing investments include Kerzner Group, International Hotel Investments, Mandarin Oriental in New York, The Adelphi in London, Jumeirah Golf Estates, the QE2, Cape Town's V&A Waterfront and Pearl Valley Signature Golf Estate and Spa.

Dubai World is the holding company which manages and supervises a portfolio of businesses and projects for the Dubai Government, working towards making Dubai the leading hub for trade and commerce.  Dubai World has more than 50,000 employees in more than 100 cities around the world and its companies include DP World, P&O, Nakheel, Istithmar PJSC, Inchcape Shipping Services and Tejari.

CES
Singapore-listed property group, City Developments Limited (CDL) holds a 52% stake in City e-Solutions. Both are part of the Hong Leong Group. Hong Kong-listed City e-Solutions (CES) has been operating hospitality-related businesses for the Group mainly based out of Denver, Colorado in the US.

Tune Hotels.Com
Tune Hotels.Com is a limited-service hotel chain in Asia. Each Tune room comes standard with a luxury King Koil® bed with deluxe 250 thread-count duvet, in-room ceiling fan and Power Shower; certain items like amenity kits, air conditioning and towels are available for a small additional charge. Similar to that of low cost carriers, Tune Hotels.Com utilizes demand-based pricing. Room rates start at US$3++ per night with advance booking at www.tunehotels.com. Each Tune Hotel has a 24 hour convenience store and branded F&B outlet.

For further information, or photography to accompany this press release, please contact:
Four Communications Group
Ben Thomas                
+971 50 755 9246 / +971 4 362 3727

Ray Eglington               
+973 360 44 111 

Istithmar
Rozana Adams             
+971 4 375 9527 / +971 50 459 3326

© Press Release 2007