Suhaojia (Hong Kong) Hotel Holding Group has announced the opening of its first Suhaojia budget hotel in Beijing near the China International Exhibition Center.

Zhu Wei, a representative of Suhaojia Greater China, has told local media that the low operational costs and broad market perspective have made budget hotels a favorite of both domestic and international investors, and by the end of 2006, the top ten international hotel management companies had all entered into Chinese market.

Zhu says that Suhaojia plans to develop over 1000 chain hotels in China and the surrounding countries and regions in the next five years and strive to be a leader in the budget hotel industry with its brand operation.

The latest statistics from local media show that there are 125 branded budget hotels in Beijing, offering a total of 12992 rooms. The budget hotel number is expected to break 200 within this year.