Since the launching of the reform and opening-up policy in 1978, China has made unprecedented progress in many fields – and the hospitality industry is no exception.

Beijing, Shanghai, Guangzhou, Xi'an and Guilin were the top five cities to attract inbound tourists in 1972, according to China's National bureau of statistics.

From 1978, a group of joint-venture hotels established a presence on the Chinese market – Guangzhou White Swan Hotel, China World Hotel and Beijing Jianguo Hotel. Since Beijing Jianguo Hotel was first internationally managed by Hong Kong Peninsula Group Hotels, an international management group in 1982, the country's hotel groups set their eyes on the high-end market.

The success of the international management of Beijing Jianguo Hotel proved to be a milestone in the industry's development. From then on, many international management companies took note of the country's development opportunities and began to flock to the Chinese market. Among those, the InterContinental Hotels Group was the fastest to seize the opportunity – breaking ground on the Holiday Inn Lido Beijing, which opened its doors in 1984.

With the advent of the information age, the establishment of Ctrip, an online provider of travel services, in 1999 was a game changer. After that, the establishment of Home Inns in 2002 and the Hanting Hotel in 2005 promoted the development of China's budget hotels.

By the end of 2008, there were 432 five-star hotels in China and by June 2018, the number of five-star hotels had reached 862, according to data from China's National bureau of statistics.

With some international hotel chains like the Hilton entering the market, the evolution of high-end hotels improved China's ability to keep up with the international tourism market.

Millennials in China also helped promote a new form of lodging: homestays. These establishments have mushroomed in the eastern provinces of China, coastal cities and the southwestern province of Yunnan.

Luxury boutique hotels are also gaining popularity among travelers in the country. The world's first underground hotel, the InterContinental Shanghai Wonderland, recently opened to the public in Shanghai, offering a unique scenery. Plunging 88m into an old quarry, the hotel also holds the world's record for lowest five-star hotel built globally.

Today China's hotel industry is facing market saturation and lethargic revenue growth. New measures should be taken if businesses wish to keep their doors open.