The person-time of domestic tourists has now shared over 60% of the total population, which can nearly meet the standard of mass tourism. Moreover, the rapid growth of China's economy has created huge market potentials for domestic tourism and this also marked the arrival of mass tourism era.

According to investigations, the average price of China five-star hotels in 2005 was RMB 806, the four-star hotel was RMB 436, the three-star hotel was RMB 268 and the budget hotel RMB 180. The data by the end of 2005 shows that the average occupancy rate of five-star, four-star and three-star hotels was among 69%-70%, while the occupancy rate of budget hotels reached as high as 92%. The proportion of commercial guests in five-star, four-star, three-star and budget hotels was 48%, 49%, 40% and 46% respectively.

By the end of Sep 2006, Shanghai with the 189 budget hotels ranked first in China, followed by Jiangsu with 104 opened budget hotels. The budget hotels also see a considerable development in Zhejiang.

Opening Results of Budget Hotels in Big Cities of China, 2000-2006

The number of hotels operated and authorized by Home Inns has reached 110 till Oct 25 2006. The total revenue has achieved RMB 249 million with the net income of RMB 27 million in the first half of 2006. The Home Inns mainly establishes its chain stores in capital cities and the central cities with GDP over RMB100 billion in China. On Oct 2006, Home Inns listed on Nasdaq and became the first Chinese budget hotel listed abroad.

The rapidly growing consumer market in China and the demands for hotel expansion stimulate budget hotels to go public successively. Due to the huge development room of China budget hotel market, many enterprises such as JinJiang Inn, Motel 168, Super8, Green Tree Inn, and Xinyu Inn are throwing enormous investment in this field. The report focuses on the development status of budget hotels in Chinese regional markets and analyzes the market performance and development strategies of the main participants.

2 Development Overview of Global Budget Hotel 
2.1 Development Overview of International Budget Hotels
2.2 Management of International Budget Hotels Market

3 Development Overview of China Budget Hotel
3.1 Overview of China Hotel Industry
3.1.1 Development overview of China tourism industry 
3.1.2 Market status of China hotel industry market
3.2 Development Course of China Budget Hotels 
3.3 Development Status of China Budget Hotels
3.4 Market Demand of China Budget Hotels
3.4.1 China mass tourism needs budget hotel
3.4.2 Economic development stimulates the development of commercial tourism
3.4.3 The increasing demand for budget hotels from international tourists 
3.4.4 Influences of real estate industry on hotel industry
3.5 Main Problems in China Budget Hotel Industry
3.5.1 Divergences caused by foreign-related management system
3.5.2 Influences of star-rating standards
3.5.3 Influences of unclear property rights 

4 Development Status of Budget Hotels in Some Cities of China
4.1 Shanghai
4.1.1 Current status of tourism and hotel industry 
4.1.2 Overview of budget hotel 
4.1.3 Prospect of budget hotel 
4.2 Beijing
4.2.1 Current status of tourism and hotel industry 
4.2.2 Overview of budget hotel 
4.2.3 Forecast of budget hotel 
4.3 Guangzhou 
4.3.1 Current status of tourism and hotel industry
4.3.2 Overview of budget hotels
4.4 Shenzhen 
4.4.1 Current status of tourism and hotel industry 
4.4.2 Overview of budget hotels 
4.5 Hangzhou 
4.5.1 Current status of tourism and hotel industry
4.5.2 Overview of budget hotels 
4.6 Chengdu 
4.6.1 Current status of tourism and hotel industry
4.6.2 Overview of budget hotels 
4.7 Nanjing 
4.7.1 Current status of tourism and hotel industry 
4.7.2 Overview of budget hotels 
4.8 Qingdao 
4.8.1 Current status of tourism and hotel industry
4.8.2 Overview of budget hotels

5 Analyses and Evaluation on Major Budget Hotels in China, 2006 
5.1 JinJiang Inn
5.1.1 Overview
5.1.2 Development strategy
5.1.3 Primary franchise fee
5.2 Home Inns
5.2.1 Overview
5.2.2 Going public in 2006
5.2.3 Primary franchise fee
5.3 Motel 168 Chain Hotel 
5.3.1 Overview
5.3.2 Primary franchise fee
5.4 Super 8 Hotel 
5.4.1 Overview
5.4.2 Primary franchise fee
5.5 Green Tree Inn 
5.5.1 Overview
5.5.2 Primary franchise fee
5. 6 Xinyu Inn
5.6.1 Overview 
5.6.2 Development strategy 
5.7 Others
5.7.1 Zhongzhou Express Hotel Home 
5.7.2 Zhongjiang Travel Hotel
5.7.3 7 Days Inn Group

6 Clients and Demands of Budget Hotels 
6.1 Clients 
6.2 Demands 
6.3 Brand Awareness of Budget Hotels

7 Development Suggestions of China Budget Hotels, 2006-2008
7.1 Forecast of Development Trend
7.1.1 Main development modes
7.1.2 Differentiated operation and brand construction 
7.1.3 Professional management and technical advancement 
7.2 Suggestions to Management