The Beijing Municipal Government has promised the International Olympic Committee that the city will have 800 star-grade hotels by the time the Olympics begin in 2008.

Given the city's existing 629 starred hotels and 24 currently being built, this means the city still need to transform and upgrade 147 of its older hotels and guest houses.

Before last year, hotels in Beijing were only on average 27% occupied, but by September this year, the occupancy rate had increased to over 46%.