With Beijing and Shanghai saturated with hotels from recent development booms, stimulus measures in China are beginning to benefit hotels in the country's secondary cities, according to Jones Lang LaSalle Hotels. Analysts are warning investors to use caution in considering Beijing, in particular, where the number of hotels doubled from 2006 to 2008 and occupancy rates are dipping below 50%, while secondary cities, including Sanya, Dalian and Hangzhou, still are growing.

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