InterContinental is launching a new hotel brand called Indigo, which it hopes will help it tap into the lucrative mid-range hotel market in the USA. The brand is the group’s seventh, along with more established names such as Crowne Plaza, InterContinental itself and Holiday Inn.

The first Hotel Indigo is set to open in Atlanta in October, and while the chain will be concentrated in the USA, some Indigo hotels may be established elsewhere.Indigo will pitched to consumers as a being at the top-end of the mid-market.

It will be marketed to hoteliers, and franchisees in particular, as a so-called conversion brand, one they can switch to if they are already running a hotel under another flag, but are looking to do something different.

‘It’s going to be in the Crowne Plaza price range, around $100 (£56) a night, aimed at people who don’t just want to find a room but who want to be made a bit of a fuss of’, said a spokeswoman.

The cost of conversion would normally be about the same as converting a hotel to a Holiday Inn, although this would depend on the state of the hotel in the first place, she added.Richard North, chief executive, said: ‘Hotel Indigo fills a critical gap in our industry right now by addressing middle market consumers who are ‘trading up’ to higher levels of quality and taste, but still seeking value.’