Beijing Government Liberalizes Hotel Rates

BEIJING— Hotels in Beijing have been given the approval to set their own prices. Until recently, more than 4,000 hotels in the city had their prices controlled by the government. Medium and small hotels could not raise prices during peak seasons and had to cut prices during weaker periods, forcing many to lose money. The Beijing Hotel Association predicted that this new ruling would bring a relaxed environment for hotel development as hotels would upgrade facilities and speed up capital returns. SOURCE: HVS International