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Press: China's budget hotels are booming

Bank Of America Investment China's hotel operators plan to provide more low-cost accommodation to meet demands of a growing economy and more business travellers, the South China Morning Post reported, citing a budget hotel executive.

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Investment Opportunity While overseas hospitality groups such as France's Accor are expanding their reach from the coastal areas to the inland cities, domestic operators such as Home Inns, Jinjiang Inn and Motel 168 are either listing their shares on overseas stock markets or recruiting foreign strategic investors, the Hong Kong newspaper reported.

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Banc Of America Investment "China's economy is undergoing rapid development, and we foresee strong demand for budget accommodation among local business travellers," the newspaper cited Zhang Shangzhi, a general delegate of Accor China and chief executive of the company's budget chain, Ibis, as saying.

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Banking Investment The China National Tourism Administration said 1.2 bln Chinese travelled within the country last year, up from 1.1 bln in 2004, according to the report.

Steady growth in tourism receipts and a boom in construction of new hotels, resorts, and residences had led to solid GDP growth in recent years, 03.

Investment Solution Strategic Zhang said Accor had signed up agreements to develop 30 budget hotels in cities including Shanghai, Xian and Chongqing, with total investment of 100 mln usd.

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Investment Banking Services "Our target is to open 100 budget hotels in the next five or six years," he said.

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