UK-listed India Hospitality Corporation (IHC), a diversified pan-Indian hospitality and leisure company, has decided to setup a new hotel in Bangalore by next year.

The hotel is expected to open by July 2010.

Apart from this, the company also plans to focus more in next 12-18 months for expanding its hotel business in tier II cities. The company has already pumped Rs 200 crore in the hotel business through its wholly-owned subsidiary Gordon House Estates.

Sources reported that, the company is close to raising funds worth Rs 1,000 crore for expansion of its hotel business.

IHC, which presently operates its hotel chain under the brand 'Gordon House', has 3 hotel properties in the country — two in Bombay and one in Pune.

Recently, the firm has signed an agreement to manage 10 hotels of realty firm Entertainment World Developers (EWDPL), which would come up by 2011.