IHG might be profitable, but they can't be making a fortune....the amount of cheap hotel rooms in China is insane, and even the HIX is basically a waste of money when comparing to the local alternatives. You can get a city centre Chinese-branded budget room for cheaper than the usually poorly-located HIX's which are 20-30 euro more. I wanted to stay in an Ibis once but my Chinese friends said no because the local chain was half the price of the $30 the Ibis was charging....

It's all relative. I know that most people visiting the Novotel in Manhattan don't consider it to be a French brand - everyone knows Dior is French.

I don't see what the difference is between Hua Luxe and Jia Ri in the eyes of a Chinese. They will just view them as the same thing. IHG will make a little bit of money, but will keep the same occupancy and profit rates across the board. Also, they will have to push the product through marketing and hope that it catches on as well as their other already-established brands have.