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Mr Zhao is the Beijing representative for a company based in Shandong province, but his office is in an economy hotel.

Compared to the high rents charged by office buildings, Mr Zhou pays just 99 yuan per day for his hotel room.

It's a price-competition solution that provides him with a comfortable place to live and work. "When I first arrived in Beijing, I went to lots of hotels and office buildings looking for a suitable place. But they were too expensive to afford."

Budget hotels are also the first choice of many business travelers. Mr Yang is an itinerant worker in a foreign-invested company who spends most of the year traveling around the country.

But wherever he goes, he invariably chooses to stay in the local branch of the same chain of budget hotels. "The decoration is consistent in style. To people like me who are always away from home, a familiar and home-like environment is good."

Economy hotels have blossomed around Beijing's downtown area in recent years. Big chains like the American Super8, Shanghai-based Jinjiang Inn and Home Inn have all opened branches.

The China Chain Store and Franchise Associations says more and more economy hotel chains are setting up shop in the capital.

The reason seems clear.

It costs 5 to 6 hundred million yuan to build a four-star hotel. Renovating an old building into a budget hotel costs just one tenth of that price.

Vice General Manager of Home Inns Hotel Management, Liu Ruilin, explains how it's done. "In most cases, we rent and reconstruct old buildings that were old factories or school buildings."

Economy hotels survive the fierce competition by providing better facilities and a nicer environment than guest houses and a cheaper price than the more up-market hotels.

Their future looks bright as the demand for budget hotel franchises with standardized looks is growing.

Zhang Kunyu is a real-estate analyst in Beijing. "Economy hotels are the dark horse of the hotel industry. And I think they have an important role to play in restructuring the industry in China."

China Drive is one of CRI's radio programs aired from Monday to Friday. We pick the most interesting life reports from China Drive. Stay tuned.