Fifteen "limited service" hotels will open in the UK in a £150 million deal announced yesterday.
The first of the Tune Hotels, based on the no-frills airline concept, will be launched later this year in Westminster.
Fourteen more of the hotels - dubbed a "five-star sleeping experience at a one-star price" - will open in the Greater London area by 2017.
The deal involves a partnership between Tune Hotels - part of the Tune Group - and London-based investment group Queensway.
Tune is the private investment group of Tony Fernandes, founder of low-cost airline AirAsia and team principal of the Lotus F1 motor racing team.
The hotels, which offer rooms starting as low as £2 per night in Malaysia and Indonesia, do not have such facilities as conference rooms, swimming pools or gyms, with guests using a pay-as-you-go system for energy-consuming amenities.
TuneHotels.com group chief executive officer Mark Lankester said: "We believe TuneHotels.com will significantly boost London's hospitality sector.