This week saw InterContinental Hotels Group announce it would soon launce a new upper-midrange hotel brand in China.

The news came from the firm’s chief executive, Andrew Cosslett, who said that the new chain would be set between the luxurious InterContinental brand and the midrange Crowne Plaza brand.

The move comes part of the world’s largest hotel firm’s plans to focus its expansion on growing markets in India, the Middle East and China in the coming years. Once completed, current expansion plans will double its number of rooms around the world as the company hopes to attract new customers that have begun travelling thanks to budget airlines and increased access to the internet. InterContinental Hotels Group has estimated that by 2025 China will edge the United States to become the largest hotel market in the world.

The news comes after the firm posted a 38% increase in profits for 2010, rising to $293 million (£181 million). Likewise, last year’s revenues rose to $1.63 billion (£1 billion), a rise of 6% on the previous year.

Mr Cosslett said in response that 2010 had been a very year for IHG. He said despite a slow start, one of its sharpest recoveries in the firm’s history followed, after which expectations were exceeded.