IHG says the fact that it continues to orchestrate major deals “is testament to the strength of our brands.”

A new luxury Westminster hotel is set to open in time for the 2012 Olympics, demonstrating the hospitality industry’s resilience in the face of the ongoing UK recession.

InterContinental Hotels Group (IHG) has revealed plans for a 254-room, six storey InterContinental hotel on the site of the former 19th century Queen Anne’s Chambers in Westminster, central London.

IHG has signed a 20-year management contract with Splendid Hotel Group, an existing IHG franchisee with Holiday Inn hotels in Manchester and London.

Shiraz Boghani, Managing Partner of Splendid Hotel Group, said: “This is by far the largest project we’ve taken on.

“The strength of the InterContinental brand and the site’s location, close to some of the city’s most famous attractions, makes it the perfect deal for us.”

The Westminster site currently houses office and retail space and counts New Scotland Yard as one of its neighbours.

Kirk Kinsell, IHG’s President for Europe, Middle East and Africa, said that despite the ongoing economic crises, the hotel group continues to sign major deals. He said: “We’re adding 5,000 rooms in the UK in the next two to three years.

“The InterContinental London Westminster will open in time for the Olympic Games in London in 2012.”

This addition will help to build IHG’s worldwide portfolio. It has 158 InterContinental Hotels and Resorts in 60 countries globally, and has plans for a further 67.

Last week the hotel group also announced plans to open a new InterContinental hotel in Argentina. The 15 storey InterContinental Mendoza will open in 2010, and will house 218 guestrooms, including 62 suites.