Waterways specialist secures Isle of Dogs deal with Tune Hotels

By Luke Nicholls

- Last updated on GMT

Related tags: Hotel chains

The development includes the former Port of London police office and an old car park to the front of the Grade II-listed Cannons Workshop building
The development includes the former Port of London police office and an old car park to the front of the Grade II-listed Cannons Workshop building
A specialist firm that converts canal and river trust assets into hotels has secured planning permission to redevelop a site on the Isle of Dogs as a 130-bedroom property which will become the fifth London hotel for Malaysian low-cost chain Tune Hotels.

H2O Urban, a partnership between the Canal & River Trust and bloc, has secured an application for the redevelopment of the former Port of London Police Office building on Cannon Drive, which has been sold on a long lease to Tune’s owner, Raag Hotels.

It will become the sixth Tune Hotel to open in the UK (five in London, one in Edinburgh), with Raag Hotels starting work on-site later this month.

Nicola Tindale, chief executive of H2O Urban, said: “Unlocking Canal & River Trust assets and delivering high-quality regeneration is what H2O Urban is all about.  Achieving planning consent at Cannons and the deal with Raag required skilful handling of heritage issues, complex local utilities and challenging site sensitivities. 

“The fact that we could deliver the deal and a scheme of this quality shows the value, professionalism and effectiveness of our approach.”

James Lazarus, head of property development at the Canal & River Trust, added: “By working in partnership as H2O Urban and doing deals like this, we can unlock value from Canal & River Trust assets and generate income for reinvestment by the Trust into the UK canal and river network. 

“Effective deals like this are central to our strategy for optimising the Trust’s property portfolio and maintaining the quality of our canals and rivers.”


Tune Hotels will use its pay-as-you-use structure at the new hotel, with regular promotional prices

Tune Hotels opened its first hotel in Kuala Lumpur in 2007 and now operates hotels in destinations across Asia. The chain opened the doors of its first UK property in in 2010, with initial plans to open 15 properties in the capital

It was founded by Tony Fernandes, founder of AirAsia, and the hotel concept can be likened to that of the low-cost airline, with a pay-as-you-use structure for services such as hairdryers, tea and coffee facilities, TV and Wi-Fi.

Guests are encouraged to book early online to secure regular lower promotional prices, which have started from £9 a night in London.

Waterway developments

Speaking of this new development, Naushad Jivraj - chief executive of Queensway Hotels, which manages Tune Hotels on behalf of Raag Hotels, said: “Investing in this opportunity with H2O Urban is an excellent opportunity for us and for the expanding Tune brand. 

“We have benefited from H2O Urban’s professionalism and expertise in overcoming significant challenges to deliver the site and we are looking forward to getting started with construction.”

H2O Urban’s latest deal with Tune follows a site opening with Travelodge in Loughborough last year and there are potentially more waterside locations that the firm is looking to regenerate with hotel schemes.

It is working on a series of regeneration and redevelopment projects across the UK to maximise opportunities with the Canal & River Trust, with a focus on schemes with an end value of up to circa £15m.

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