Budget holiday hunters may be interested to know that a new hotel chain is offering no-frills accommodation for as low as 20 cents per night

The new budget Tune Hotel is on the same site as the Low-Cost Terminal in Kuala Lumpur and is the brainchild of AirAsia boss, Tony Fernandes.

And just like any famous discount airline chief, Virgin boss Sir Richard Branson and Malaysian entrepreneur Fernandes have moved from music exec to low cost airlines and now into hotels and more.

The low-cost hotel, one of many cropping up across Asia, is the definition of budget digs and anything above the basic will cost you.

In spite of their no-star rating, a standard room is quite small and equipped with a 5-star queen bed, a hot electric shower and a ceiling fan, although clean and modern.

Communications manager for Tune Biresh Vrajlal said that most travellers who have stayed in the hotel describe the size by saying you couldn’t swing a cat there.

The room does not include a television, refrigerator or kettle, and any extras such as towels, a kettle and air conditioning would be charged as extras.

Air conditioning is a must for such a small room, which can quickly heat up in the hot Malaysian climate.

All of the hotels have free internet available in the lobby and the chain of hotels has retail shops associated with them where you can buy breakfast for about $2.

The concept is similar to that of low-cost airlines, which employ a self-service online booking system and rates are kept low by offering limited services.

The average price of a room starts at about $3 per night, but if you take advantage of some promotions, you could book a room for as low as 23 cents per night.

The first of the Tune hotels was launched in May 2007 in Kuala Lumpur, and now operates in Bali, throughout Malaysia, and soon, India.