Richard Branson’s Virgin Group is to launch an ‘urban hotel brand’ and is reportedly building a development team.

Marketing Week said that the new brand is expected to be launched in the next three months.

The trade magazine quoted a Virgin Group spokesperson, Jackie McQuillan, as saying: “It is very much in the development stage but we are really excited about it. It is something that fits perfectly with the rest of the brands.”

Branson was also quoted as saying he wants to develop a hotel brand based on Starwood’s W hotel – “urban, townhouse-style properties, halfway between a hotel and private club”.

The first properties will possibly be in New York, London and Los Angeles, which are all served by Branson’s Virgin Atlantic airline.