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China's booming budget hotels profit from no frills
Guardian ^ | January 16 2008

Posted on 01/17/2008 9:18:43 AM PST by charles m

SHANGHAI, Jan 16 (Reuters) - German engineer Michael Bosch is not fazed by the lack of a gym and other creature comforts at his budget hotel in a converted Shanghai office building. He's stayed at such hotels on nearly a dozen trips to Chinese cities.

"All I need is a clean, warm place to sleep. I don't care so much about service," the 32-year-old said as he waited for 10 minutes for a distracted receptionist to attend to him at a Motel168 on the edge of Shanghai's financial district.

The number of budget hotel rooms has mushroomed in the past eight years from practically zero to over 100,000 with more than 100 brands competing for a bite of China's rapidly expanding domestic tourism market. More than a 100 brands have emerged.

The fast-developing Chinese budget hotel industry resembles the U.S. motel boom of the 1950s, which was fuelled by tourism and expanding highways. "China has a population four times that of the U.S, and the potential to be the world's biggest budget hotel market," said Wang Lie, chief financial officer at budget chain Hanting Hotels.

Political and social change, as well as China's economic boom, have aided the industry. Until recently, the government did little to encourage domestic travel by its citizens, partly because of concern about public security and social stability.

The industry has drawn Chinese entrepreneurs including Ji Qi, 42, the crew-cut, fast-talking son of a farmer. He quit his job as a computer sales manager in Shanghai in the mid-1990s to travel in the United States for a year, before returning to establish a string of firms. He co-founded online travel agent Ctrip in 1999 and Home Inns, now China's biggest budget hotel chain, in 2001. Both are listed on the U.S. Nasdaq market.

(Excerpt) Read more at guardian.co.uk ...


TOPICS: News/Current Events
KEYWORDS: china; hotels; motels

1 posted on 01/17/2008 9:18:45 AM PST by charles m
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To: charles m

Interesting. Thanks for posting.


2 posted on 01/17/2008 9:23:29 AM PST by PGalt
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To: charles m
Anything like the coffin hotels?


3 posted on 01/17/2008 9:34:32 AM PST by Domandred (Eagles soar, but unfortunately weasels never get sucked into jet engines)
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To: Domandred

Like something out of a William Gibson novel. Kibble for room service? Motel 68? Come on over, we’ll leave a night light on for you.


4 posted on 01/17/2008 9:53:23 AM PST by printhead
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To: printhead

They did this in Japan for a while...iirc


5 posted on 01/17/2008 9:59:28 AM PST by DonaldC
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To: Domandred

Ref post #3.

I bet that photo is Japan. They have that kind of service.

I have been to both countries and it is too clean to be China. China is filthy although I loved my travels through China. It was a learning experience and not a vacation. And yes, I would like to return to China (as well as Japan).

That is a great thing about traveling. Most of all, one can’t be fooled by photos.


6 posted on 01/17/2008 10:24:29 AM PST by GatĂșn(CraigIsaMangoTreeLawyer)
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To: Domandred

My personal apologisies to you, Domandred. I am very sorry for my snotty remark. Please forgive me.

I didn’t read the top portion about coffin hotels.

Chinese should be so lucky about something like that.

Maybe Las Vegas, NY, San Francisco, etc. could start something like that.

I’m am truly sorry.


7 posted on 01/17/2008 10:43:48 AM PST by GatĂșn(CraigIsaMangoTreeLawyer)
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