[photopress:hotels_home_inns_1.jpg,full,alignright]Budget hotels in China are coming under tighter controls. This will be to the advantage of top players such as Home Inns (an example seen here) and Jinjiang Inn by making it somewhat more difficult for newcomers. This according to Zhang Minghou, assistant to the head of the China Hotel Association. He said, ‘The rules will help to prevent blind investment, protect consumer interests and benefit the big players.’
The rules, expected to be announced by China’s commerce ministry possibly as early as this year, will divide budget hotels into three categories and set separate quality standards for them.
Zhang Minghou said, ‘Substandard hotels are hurting the whole industry and should be eliminated. Due to absence of an industry standard, many consumers have been misled.’
China’s budget hotel industry has risen to 100,000 rooms in 2006 from almost none in 2001, spurred b rising demand from small businesses and families on holiday.
Rising competition contributed to a 45% slump in average room rates and lower occupancy rates in the industry in 2005.
Budget hotel room rates average about RMB200 in China, less than one-quarter those charged by five-star hotels.