With budget hotels fast growing in Changsha, those hotels that have lower than three-star ratings have grown an alliance to compete with the upstart businesses.

One representative from Changdao Hotel in Changsha has told local media that over the recent years, their hotel occupancy has slipped to 60%, compared with 100% in 2003. According to published data, the number of business travel trips in China was 1.39 billion in 2006, and is expected to break through two billion this year. It is a huge market for all categories of hotels.

Founded in October 18, 2007, the Changsha Lianyi Business Consulting Company Limited aims at uniting those single hotels with pricing lower than high-end hotels to form the alliance. Once the hotels join, they can share their customer resources and their membership guests can book rooms through the alliance.

Compared with star-grade hotels and budget hotel chain brands mostly distributed in big and medium cities, this league has an advantage of owning hotels in small cities or counties around China. There are currently more than 240 hotels part of the alliance with about 300,000 membership customers, distributed in 40 areas of 11 provinces such as Shanghai, Guangzhou, Wuhan, Tianjin and Chongqing. Among them, Changsha has 22 hotels belonging to this league. In addition, the league also has cooperated with more than 900 hotels in 187 areas of 26 domestic provinces.

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