InterContinental launches new China hotel chain

Intercontinental Hotels (IHG) hopes to tap into the growth of domestic travel in China through a new brand that celebrates Chinese culture.

The company said the move was a response to research showing the "Chinese traveller wants the status of a world-class luxury hotel group combined with a feeling of pride in China and respect for Chinese tradition".

Its new brand is called HUALUXE, which translates from Hua, which means 'majestic China', and luxe, representing luxury.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

It will focus on four key priorities it feels are important to Chinese travellers: tradition, rejuvenation, status and familiar spaces.

IHG expects the number of domestic travellers in China to reach 3.3bn in 2015 and forecasts the China hotel market will grow by 5-8% annually by 2030.

The firm said it had already signed over 20 letters of intent which are now being converted into contracts and it expected the first hotel to be open in late 2013 or early 2014.

It has grand plans to roll the brand out to over 100 cities in China in the next 15-20 years.

Chief Executive Richard Solomons said the new hotels would fill a gap in the market and provide Chinese travellers with an environment to conduct business and socialise in a way that is tailored specifically for them.

"HUALUXE is a genuine first for the industry - the brand takes the best aspects of renowned Chinese hospitality and applies IHG's international scale, powerful systems and unparalleled insights to deliver a traditional high-end consistent experience," he said.