The lack of a precise definition means that the total number of budget hotels is unknown. According to the National Tourism Administration, 60,000 of the nation's 260,000 hotels, with a combined 3 million rooms, can be termed budget hotels.

"Generally, budget hotels only provide bed and breakfast. They are as good as three-star hotels, but have no resplendent lobby, no conference rooms or entertainment centers. Some don't even have dining halls," said Wei.

"Unlike hostels and boarding houses, budget hotels have to be part of a chain that offers standard facilities and services, " added Wei.

According to Zhang Zhijun, an official with the Beijing Tourism Association, budget hotels cannot be compared with three-star hotels because there are no separate statistics.
However, budget hotels are generally cheaper than three-star hotels in similar locations. Rates range from 100 to 200 RMB (12.5 to 25 U.S. dollars), 15 to 30 percent down on three-star hotel rates, Zhang said.

"All I need when I'm away from home is a clean bed and a convenient location. For me, budget hotels are good enough," said a 26-year-old girl called Wang, who earns 4,000 RMB (500 U.S. dollars) per month in a Beijing consulting firm.

Budget hotels usually target people aged 25 to 35 with a monthly income of 3,000 to 5,000 RMB (375 to 625 U.S. dollars), said He Hongzhang, CEO of burgeoning Top Star, a domestic budget hotel chain that hopes to open 1,000 outlets by 2015.

International hotel groups like Super 8, IBIS, Amersino and Holiday Inn Express are also licking their lips at the business opportunities. Super 8, a U.S.-based budget hotel group, has just opened its 30th franchise hotel in Beijing and is planning to open another 68 hotels in China by the end of the year.

China's domestic hotel market is expected to boom in the lead-up to the 2008 Olympic Games and the 2010 World Expo. Beijing is expected to receive 4.63 million tourists during the Olympics.

Industry analysts are predicting a rosy future for budget hotels as their attractive prices and satisfactory services continue to win the hearts of tourists.

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