IHG details name, development plans for Chinese brand

19 Mar, 2012 By: Andrew Sheivachman

IHG finally announced its branded entree into the Chinese hotel market with Hualuxe Hotels and Resorts, in a move that asserts IHG's challenge to Western brands that have already begun to capitalize on the large Chinese middle class. The brand will appeal to the upscale Chinese traveler by combining traditional Chinese customs and traditions with a more luxurious, intimate environment than many Western brands bring to the country, according to the company. The Wall Street Journal reports that the franchise will follow the same model as IHG's other brands in China.

"Hualuxe takes the best aspects of renowned Chinese hospitality and applies IHG’s international scale, powerful systems and unparalleled insights into the Chinese market to deliver a traditional high-end consistent experience,” said IHG CEO Richard Solomons in a release. "IHG is already the largest international hotel operator in China, with more than 160 hotels across 60 cities and sees the opportunity for this brand to be in over 100 cities in China in the next 15 to 20 years. IHG has already signed over 20 letters of intent which are now being converted into contracts and we expect the first hotel to be open in late 2013 or early 2014."

The brand will launch in a variety of primary, secondary and tertiary cities around China. While IHG was the first Western hotel company to enter China three decades ago, it faces an uphill climb in the country compared to a few competitors. Hilton recently opened its 14th hotel in the country, while luxury brands like One&Only are beginning their push into China. China Daily reports that amenities like tea lounges and foot massages will create a unique touch point for the brand among luxury-minded Chinese.