China's hotel industry can trace its roots to an earlier age of daks and inns, and over the years the hotel industry has been evolving in order to accommodate the needs of a rapidly changing society. Over the last several years, tourism in China has been growing by leaps and bounds in part because of the rapidly improved living standards of people throughout the world. This advancement has also had a corresponding effect on China's hotel industry, one of the three main pillars of tourism in China. Star-level hotels and budget hotels in China's major cities developed rapidly, forming current China hotel industry with large scale, considerable quantity, all kinds levels and styles.

The hotel industry has been one of China's most open sectors; the first foreign-run luxury hotel opened in Beijing in 1982. international hoteliers have been rushing to expand their presence in China. In addition to China's booming economy, which has spurred business and leisure travel markets, China's fast-developing real estate sector and skilled workforce is attractive to foreign hoteliers.

China is the second largest destination traveling country in the world, receiving a large number of visitors both domestic and abroad every year. Economy hotels, youth hostels and youth hotels are growing up very fast in china.

By the end of 2005, China's star-level hotels totaled to 12930, increasing 2042 with a year-on-year rate of 18.75%, hotel rooms reached 1.37 million, increasing 132.1 thousand with 10.67%, beds amounted to 2.55 million, increasing 183.4 thousand with 7.75%. Considering the current investment enthusiasm in hotel industry, the estimated amount of star-level hotels will reach 13500 by the end of 2006.

Accommodations are more luxurious in the large and thriving cities like Shanghai, Hong Kong, Beijing, Guangzhou, Xian and Shenzhen. Fewer luxury hotels can be found in smaller cities or remote areas. However, there are plenty of economical or standard hotels away from the larger cities that are clean, comfortable and safe.

Some traditional Chinese hotels like those found in the quadrangle in Beijing are becoming more and more popular among foreign tourists. In China, not all hotels are permitted to receive foreigners depending on whether or not they meet certain requirements.

Compared with international hotel industry, China hotels, especially those accommodate foreign tourists, are more advanced on hardware.

The increase of the numbers of the hotels make more choices available for the tourist and lead to more competition and better prices. Which is the good news for the travelers indeed.