Hotel companies are looking to capitalize on the significant demand potential in China as the country’s economy grows and the government loosens travel restrictions.

China, with its population of approximately 1.3 billion, represents a treasure trove of demand for hoteliers. And some companies are already beginning to note a pickup in business relating to Chinese tourists.

Referring to a Credit Suisse report, Lyle Lewis, executive VP, operations, Carlson Hotels, Asia Pacific, wrote in an email that outbound demand could increase fivefold in 10 years in China to 120 million outbound travelers.

There are 56 million outbound travelers from China today, noted Keith Barr, regional managing director, greater China, for InterContinental Hotels Group. Within 10 years, there will be 100 million outbound Chinese, he added.

To capitalize on the expected growth, IHG is developing a yet-to-be-named, China-specific brand. Once travelers get used to the brand, it will be expanded outside of China into other markets.

“No one has built an international company brand that’s based in China, for China, based upon Chinese-consumer insight … and eventually, we’ll see that brand start in China and eventually go abroad,” he said.

Barr declined to discuss the specifics of the new brand.

“It’s good business to be committed in China today for just the business in China … We’re going to link them into the global travel piece in time,” he said.

China joined the World Trade Organization in 2001. Since then, the country’s outbound demand slowly has been on the rise, said Daniel J. Voellm, managing director, Hong Kong, for HVS Global Hospitality Services.

“Over time, China has opened up more,” he said. “There’s more economic activity.”