Sir Richard Branson's Virgin Group has announced the launch of Virgin Hotels, a new four-star lifestyle hotel brand.

The company plans to develop and operate up to 25 hotels within seven years, with the first property expected to open within 12-18 months.

As part of the launch plan, Virgin Group, in conjunction with entrepreneur Alberto Beeck and hospitality and real estate investor Diego Lowenstein, has established a property venture that will acquire US$500m (£315.5m) of Virgin-branded hotel assets in the next three years.

The new brand's management team will be led by executive director Anthony Marino, who currently serves as managing partner of Virgin Group's leisure and hospitality sector.

Raul Leal - a hotelier with 25 years experience in upmarket hotel operation, development and design - will serve as president and chief operating officer. Beeck and Lowenstein will serve on the company's board of directors and Paul W. Whetsell - president and CEO of Capstar Hotel Company - will advise Virgin Hotels on operations and acquisitions and also serve on the board of directors.

Although ultimately planned to be an international operation, Virgin Hotels properties will initially will be located in North American gateway cities - with the company having its eye on New York, San Francisco, Miami, Los Angeles, Boston and Washington DC to begin with - and have between 150 and 400 guest rooms, restaurants, and communal public spaces.

Marino said: "We are already in contact with brokers, owners, lenders and others active in hotel real estate. We are flexible in our approach and seek to joint venture with existing owners, partner with investment groups to acquire hotels, work as a third-party manager or acquire properties outright for our own account."