Performance Comparisons of Hotels in China

China’s hotel industry has only really existed since 1978. In that time, it has grown in size

and complexity of ownership. Quality has been improved by the introduction of foreign

management techniques and quality standards, for example the star-rating system of hotel

classification. This paper compares performance of hotels using various hotel groupings

according to ownership, size and star rating.

The comparisons indicate that better performance occurs in hotels that have foreign

ownership connections (especially those linked to Hong Kong, Macauand Taiwan partners),

those that are bigger and those which have a higher star rating.

According to the World Tourism Organization, China is forecast to become the world’s

number one tourist destination by 2020. This paper also identifies the major issues facing the

Chinese hotel industry and the government as they face this astounding prediction.