Luxury hotel group Kempinski Hotels, is doubling the number of hotels under its management in China over the next three years to capitalize on the nation's fast economic recovery, said a top company official yesterday.

The German firm is also launching a new five-star hotel brand called Nuo exclusively for the Chinese market.

"We have 11 hotel properties under operation (in China), and we will add 12 more to our line up over the next three years," said Reto Wittwer, president and chief executive officer of Kempinski.

Although China is still "young" in Kempinski's global business, and accounts for just 15 percent in terms of the number of hotels, the market will continue to grow quickly in the years ahead. By 2012, China will account for 20 percent of turnover and profits, said Wittwer.

The group also expects its business to blossom in the country after the Nuo brand comes into existence and expands its network.

"Nuo and Kempinski will share the same team, resources and technology. We intend to have Nuo hotels in all major cities of China," he said.

The hotel sector in the country was badly hit in the aftermath of the financial crisis as inbound travel declined. Industry sources, however, maintain that the sector has started to recover from the third quarter of this year and expect the market to regain its momentum next year.

That is, however, in stark contrast to the scenario in America and Europe where the prospects are still sluggish and unpredictable. International hotel groups are all betting on the Chinese market, expecting it to make up for the losses in developed regions.

"China is one of the few regions that is doing well amid the gloom," said Wittwer.

The hotel sector in the country has been abuzz with developments in the recent months. Last month InterContinental set up a 3 billion yuan hotel in Shanghai, while budget hotel operator Home Inn said it was planning to enter the high-end hotel segment.

Compared with many of its foreign counterparts, Kempinski, however, has been going slow on its expansion. "Kempinski is a luxury brand, and luxury hotels cannot be multiplied just like that," said Wittwer.