Qingdao now boasts about 150 star hotels with more than 30 under construction, according to a source from the city's tourism administration.

The boom in the industry was a result of the city's rapid economic development and its increasing attraction to tourists from home and abroad.

The western area of Qingdao studded with luxury hotels. [Photo by Li Xueliang]

The industry was turning from simply providing hospitality to offering more resort hotels by expanding or upgrading existing hotels and building new hotels, a trend which has transformed city tourism to a vacation economy.

The years from 2003 to 2009 saw the first wave of new hotels or others being upgraded. More than 20 four-star or above hotels, like Qingdao Shangri-la Hotel Phase II, Sophia International Seaview Hotel Phase II, Haiqing Hotel Phase II, InterContinental Qingdao, Holiday Inn Qingdao Parkview and Le Meridien Qingdao, were established for international exhibitions and business events.

Another 30 star hotels were under way or starting construction this year, most of which are for well-known international hotel management groups.

Antaeus Group invested in the five-star Qingdao Mangrove Tree Resort Hotel, which started construction May 30, at an estimated cost of 6 billion yuan (US$882 million). The five-star Hyatt Regency Hotel Qingdao Ginza is being built by Shangdong Commercial Group and the Hyatt Corporation.

The Qingdao Ocean Spring Resort Hotel, also a five-star hotel, will open May 1 next year.

Other hotels to open from 2011 to 2014 include several Sheraton Group hotels, Kempinski hotel in Huangdao District, Four Seasons Resort in the Olympic Sailing Center and an Evergreen Hotel on Fenghuang Island.