What Determines Foreign Hotels’ Investment Location Choice in China?
Yuanyuan Guan, Jianquan Guo

This study aims to investigate influence factors of the foreign hotels’ location choice by a conditional log it model. Here 826 budget foreign hotels and 801 superior foreign hotels in China from 2000 to 2015 are taken as samples to study the determinants of their location choice. Results show that location factors, the level of tourism development and the hotel business environment have significant influence on the foreign hotels’ location choice. Additionally, by examining location models for different levels of hotels, the influence of these three factor son location choice of the budget and superior foreign hotels are proved to be different. This result is helpful to explain the different location distribution of budget foreign hotels and superior foreign hotels, moreover, it can be used to as a guide for the local government to adjust their economic policies to allure foreign hotels and thus improve the development of their tourist industry.

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