China is the next big destination for the Taj group, India's largest hospitality chain. The Tata-controlled group is eyeing premium properties in China, by acquiring them and by striking management contracts with local companies.

Confirming the development, a senior executive of Indian Hotels Company said: "Given the boom in the Chinese economy, we cannot ignore that market. We are looking at having a presence in China and are giving the final touches to our China strategy."

The group has a global strategy that includes acquiring chains of hotels as well as individual properties.

The China plan will be similar, though individual properties are likely to predominate. China today has over 3,000 starred hotels.

Hotel occupancy in the country is above 65 per cent and the Taj group is looking at an entry before the Olympics next year.

"Currently, the domestic traffic in China is higher than international traffic. Also, with more companies setting up shop, China is a rapidly growing market," industry sources said.

Several other Tata companies are also looking at China seriously. These include Tata Consultancy Services, Tata Engineering and Voltas.

Indian Hotels was almost on the verge of acquiring the super-premium Carlyle in New York, but the deal fell through due to eleventh-hour financing problems.

The Taj group has restructured its international operations and sold several business hotels in the US, including the Lexington in New York and Executive Plaza in Chicago.