Intercontinental Hotels Group (IHG) is to launch a new upscale hotel chain in China within the next six months and eventually export the brand across the Asia Pacific region.

In an interview with Dow Jones Newswires, Jan Smits, Chief Executive of Asia, Middle East & Africa Operations, said the company is looking to become a favored choice among Chinese travelers and to take advantage of the positive growth outlook across Asia Pacific.

Yet unnamed, IHG has brought forward the brand launch date which it had previously scheduled for the end of 2012. “There's obviously a lot of interest in a domestically-grown brand that has got the benefit of a large international system behind it. Owners have shown significant interest," Smits said.

Already, 12 initial contracts for the new hotel chain have been signed across China, including Beijing, Shanghai and other second and third tier cities. IHG will then expand the brand overseas to attract growing numbers of outbound Chinese tourists, which are expected to rise fivefold to 100 million a year in the next decade. Smits sees Hong Kong and Singapore as logical choices for expansion outside of China.

The new brand will play a major role in IHG’s plans to more than double the size of its operations in China, India and the Middle East in the next few years. Smits expects the new Chinese brand to get off to a good start as traveler numbers are boosted by rising incomes and spending power, as well as increased life expectancy, low-cost airlines and the ease of Internet bookings.

Despite concern over the fragility of the global economy, the company recorded strong profit in November 2011, with third-quarter net profits rising 19% year on year. Smits said it's unlikely the woes in the West will hit room occupancy and put downward pressure on room rates in emerging markets, which are the engines of growth in global retail and leisure.

Source: Travel Daily Asia