Franchising is a commonly used market entry strategy in the hotel industry. Licensing on the other hand, is mostly applied in the technological industry. This study critically evaluated franchising and licensing as market entry modes and their roles in the Chinese hotel industry. Primary data materials were gathered from informants from international hotels and associations in the hotel industry. After in-depth analysis, the research found a number of unique points are not included in the literature, such as, licensing enabled rapid expansion in the hotel industry in China. The findings have valuable contribution to the related literature and practice. The researcher also made recommendations for further research at the end of this study.