What kind of hotel can receive foreign guests?

Hotels need a tourism (foreign-related) business license to receive foreign guests.

According to Article 25 of the Regulations on Star Rating of Tourist (Foreign-related) Hotels in People's Republic of China (PRC), the state implements the system of issuing tourist (foreign-related) business licenses by the tourism administration department, namely the Tourism Bureau.

Twenty-sixth all newly-built hotels must obtain the star construction and tourism (foreign-related) business license issued by the hotel star rating agency before they can carry out tourism (foreign-related) business.

Article 27 After receiving the notice of grading or the notice of temporary grading, the hotel shall, within three months, obtain the tourism (foreign-related) business license issued by the National Tourism Administration from the local tourism bureau with its business license. Those who fail to receive it within the time limit shall not engage in tourism (foreign-related) business. Anyone who forcibly conducts foreign-related business in violation of these regulations is deemed to be in violation of state regulations, and the hotel operator will be held accountable and dealt with according to law.

Twenty-eighth hotels do not meet the minimum requirements of a one-star hotel because of the facilities and service level. After receiving the notice of not grading, tourism (foreign-related) business shall not be carried out. Anyone who violates these regulations and forcibly carries out foreign-related business is regarded as violating state regulations, and the hotel operators will be held accountable and dealt with according to law.

References:

People's Republic of China (PRC) tourist (foreign) hotel star rating regulations _ Baidu Encyclopedia