Chinese hotel industry, as a service industry in China, has made great strides forward not only in hardware environment but in software environment along with the development of economy and accession of international hotel management groups, with its reception capacity and level having reached international standard, by which it can fulfill varieties of requirements of customers of different regions and different types. The present condition of hotel industry can be shown in different ways as follows:

From the Perspective of Hotels’ Standards of Grades: Hotels have been divided into five star-standards by the government on the basis of their external environment, hardware facilities, internal management, service levels, prices and other requirements of international levels. Generally, Five-Star and Four-Star hotels are preferred by successful persons and foreign friends, while hotels below Three-Star are the top choice of parts of businessmen or individual travelers. Now, as the rapid rise of economic hotels, which win favor of the market by reasons that they are handy, convenient and affordable and become an indispensable part of the hotel industry, hotels below Three-Star are basically replaced by the economic ones.

On the Aspect of Hotels’ Quantities and Structures: The number of Chinese traveling hotels have amounted to 14,327 by 2007, including 361 Five-Star hotels and 1,631 Four-Star hotels with 1.6 million of guest rooms, among which the number of Five-Star hotels increased typically; in 2007, 65 Five-Star hotels were rated, with 30 hotels being added, increased by more than 20% on the year-on-year basis.

From the Standpoint of Hotels’ Service Facilities and Service Levels: There isn’t much difference between service facilities of Chinese hotels and foreign hotels of the same grade. Generally, there are luxurious rooms, administrative rooms, common rooms, meeting rooms, bars, multifunctional halls, Chinese and Western restaurants and commercial services in Four-Star and Five-Star hotels, with many Five-Star hotels equipped with swimming pool, luxurious banqueting hall, Spa and fitness center; some of them even have independent wedding hall and rose garden, with hairdressing, photographer team and wedding services in special area of bride and bridegroom. Most of express hotels and Three-Star hotels supply catering services, while some of them even are equipped with kitchen equipments indoor, offering convenience for those who like to cook for themselves. Laundry service is available in most star-grade hotels in China. Generally, indoor configuration of hotels are composed of hot water, TV service and toiletries, including soap, bath foam, shampoo, toothpaste, toothbrush, comb, slippers, bath towel, towel and etc. In Four-Star and Five-Star hotels of some regions, English television programs all around the world are accessible; the hotels are controlled by computers and all the rooms provide free high-speed broadband network, plasma TV and DVD player, and some of them even are equipped with advanced VGA (Video Graphic Array) terminal. Owing to the allying of many international management groups and brand management, Chinese hotels’ management and service level have been improved greatly so as to make the guests feel comfortable.

In the View of Hotels’ Development: Upon the Organizing Committee of the Olympic Games’ requirements that the number of star hotels should reach up to 800, and the number of guest rooms should reach up to 130 thousand in Beijing when the Olympic Games is held in 2008. More than 4,500 guest rooms have entered the market as additional supplies in 2007, while 7,000 guest rooms will enter the market in 2008 as predicted. There are 853 star hotels with the number of guest rooms amounting to more than 170 thousand in Beijing so far. Hotel industry market in Beijing has fulfilled the reception requirements for the Olympics, with basically balanced supply and demand. Besides, the developing trend of hotels has moved toward both ultra-luxury hotels and economic hotels. In some municipalities directly under the Central Government, grade of “Platinum Five-Star” has been added on the basis of “Five-Star” grade, China World Hotel in Beijing, Portman Ritz Carlton in Shanghai and Garden Hotel in Guangzhou have been officially ratified as “Platinum Five-Star Hotel” in Aug., 2007. In recent years, economic hotels have developed rapidly into three groups: the first group is the nation-wide domestic economic hotel brands, such as Home Inn, Jinjiang Inn, 7 Days Inn and etc. The second group is the regional domestic economic hotel brands, such as Motel 168 in Shanghai, Jin’s Inn in Nanjing, Inn in Zhongzhou of Zhengzhou, Yangzi Hotel in Chongqing and etc. The third group is international economic hotel brands, such as Super 8 subordinated to American Wyndham Hotel Group, Ibis subordinated to France Accor Group.