InterContinental Hotels Group (IHG), the largest hotel operator in the world by room number, said on Tuesday that they are planning the launch of an upper mid-scale hotel chain in China, which is one of the fastest growing emerging markets. During a press conference, chief executive Andrew Cosslett said the new brand, which hasn’t been named yet, will be more than just IHG’s upscale Crowne Plaza chain but not as upscale as their InterContinental luxury brand. They expect to open the first venue by the end of this year.

IHG is planning to more than double their operations in key emerging markets, which also includes the Middle East and India, over the next few years. This comes as they take advantage of increasing traveler numbers and global economic travel trends, which have been boosted by being able to book holidays online, the use of budget carriers and a rise in life expectancy.

Cosslett also noted in an earnings statement that they had an excellent year in 2010. The industry had the sharpest recovery in history after a slow start, he continued, and the 21% increase in their final dividend shows they are confident in the company’s prospects. Their priority is to raise market share and improve margins in a sector predicted to have strong growth in the next few years, he added.

IHG expects China to overtake the US as the largest hotel market by 2025. However, they are also planning to launch a new mid-scale brand in the US, where they currently make 66% of their profits. The group has 7 brands and says they have a lot of headroom left compared to other rivals that have twice as many. Chief financial officer Richard Solomons also noted that their strategy to potentially ditch some of their key brands hasn’t changed, pending market conditions, as they have signaled they won’t hold onto them forever.