Ms. Song invested her entire life savings into contracting a hotel, reportedly pouring over ten million yuan into the project. However, she later discovered the property's land designation is not commercial at all, which has made passing fire safety approvals impossible. She signed a room contracting agreement with Hangzhou Jiaden Business Hotel Co., Ltd. on March 15th, 2023. After signing, she spent over 10 million yuan renovating the hotel, tearing everything down and starting from scratch. She invested all her money into this hotel, but right after the renovation was completed, she was penalized by the administrative enforcement team and ordered to suspend operations for rectification.

The Radisson Yiman Hotel is located on Xingguang Street in Linping, Hangzhou. According to Ms. Song, the "Jiaden" company mentioned in the Room Contracting Agreement acts as a sub-landlord, having previously operated a hotel at the location. After contracting the property, Ms. Song operates it independently, continuing to use the original business license and making regular contracting fee payments to "Jiaden". The contracting period runs until December 31st, 2029, with an annual fee exceeding two million yuan. This includes the ground-floor lobby, breakfast area, meeting rooms and offices on the fourth floor, and guest rooms on floors five through eight. During the renovation process, she needed to go through opening approvals. She was handling these procedures, engaging relevant fire safety authorities to draw up fire protection plans, only to discover that the plans couldn't even be submitted for review. Why? Because the land is designated for industrial use, and they simply refuse to accept applications for hotel operations under that classification, making it impossible for her to even file the necessary documents.

In November 2023, the Jiaden Business Hotel was penalized by the fire rescue brigade for unauthorized use and operation after renovations and expansions without necessary approvals, resulting in a suspension order and a 30,000 yuan fine. Then, in 2024, it received similar penalties for the same reasons. When questioned whether the property previously operated as a hotel, Ms. Song explained that national regulations are clear on industrial land. To change the designation to commercial, a land transfer fee must be paid. The initial application process included payment for a five-year period, which was successful at the time, allowing the original license to remain in use. However, since around 2016, there have been no further payments for this fee. Ms. Song provided a review form from the district regarding the temporary land use change and land revenue fee supplementation. It shows the land under the hotel, over 5,000 square meters, is designated for industrial use, with the change period spanning from 2016 to 2020 and requiring a transfer fee of over three million yuan. To get fire safety approval, this land transfer fee needs to be paid in full. The primary landlord has clearly stated and informed them that the property is on industrial land, and for hotel use, Hangzhou Jiaden Business Hotel Co., Ltd. is responsible for paying the transfer fee. When contracting the hotel to her, an illusion of legitimacy was created. The actual hotel premises cover over 10,000 square meters, and the underreported amount would still require nearly one million yuan annually in land transfer fees. If calculated based on the true area, it could cost over twenty million yuan across a decade for legal hotel operations. This is essentially an illegally operated venue, and if any incident occurs, the landlord could easily shift blame to the actual operator.


In late August, Ms. Song sent a formal notice to "Jiaden" stating her intention to terminate the contract due to the property's land designation and fire safety licensing issues. At the time of the interview, the hotel was still operational, reportedly run by "Jiaden". Ms. Song claims it's their responsibility to come up with the over twenty million yuan payment, not hers. She sees herself as the victim, having invested over ten million yuan into this project, her life's work, and she's demanding compensation for her renovation losses. When approached for comment, the hotel office was empty. A phone interview was conducted with the legal representative of Hangzhou Jiaden Business Hotel Co., Ltd., a Mr. Su. He stated that as of now, Ms. Song owes them nearly four million yuan in rent and contracting fees. He claimed that at the end of last month, she suddenly sent a text message announcing unilateral contract termination and simply walked away. Following her departure, various complaints and reports began surfacing. Ms. Song, however, disputes the amount, saying it includes interest, late fees, and some taxes she doesn't recognize. Mr. Su also mentioned that employees are owed two months of back wages, and suppliers, such as a laundry service, are owed over 600,000 yuan. He alleged that Ms. Song moved belongings out late at night using a hauling service without notifying them. Ms. Song counters by saying that the company took over financial control in 2024, and since the business revenue is going to them, they should be responsible for paying wages and handling reimbursements.


Regarding the land status and the company's response, Ms. Song's business has reportedly been struggling for years, with "Jiaden" now bearing the operational burden. She maintains that due to their unresolved issues, she's unable to run the business peacefully, having incurred losses every year for three years. During operation, various government departments would conduct inspections, frequently resulting in fines or shutdown orders. For instance, the public security bureau recently ordered the closure of the 8th floor for not holding proper licenses. The Special Trade License provided by Ms. Song, issued to "Jiaden", lists the operational floors as "4 to 7". However, her contract includes the 8th floor. At the end of August, the public security bureau issued a corrective action notice to "Jiaden" for "unauthorized increase in room count and addition of operational floors". Mr. Su addressed the industrial-to-commercial land conversion issue, explaining that the 8th floor was added later and is also caught up in the approval process. He stated it was never used or reported as guest rooms. Mr. Su acknowledged they are dealing with the land transfer fee matter but described the process as complex, citing administrative hiccups during the district split between Yuhang and Linping, along with long closures during the pandemic. He insisted they are willing to pay what they owe, and this is separate from Ms. Song's contractual obligations. They were already in discussions with the government, but noted the payment amount is higher than the current rent. This is a systemic issue from urban expansion, where many former industrial properties on city fringes are now within the main urban area. A staff member from the Hangzhou Municipal Bureau of Planning and Natural Resources Linping Branch confirmed that arrangements for the land transfer fee are under process, but the specific amount and payment deadline haven't been finalized.


Mr. Su further argued that the hotel's fire safety was compliant before Ms. Song took over. He claims her renovation wasn't submitted for approval, and it's the subsequent penalties that have complicated the process, requiring a different set of approvals. They've been actively pursuing the matter and have submitted a report, ready to pay any supplementary fees. A representative from the 12345 hotline reported that on September 1st, the fire rescue bureau inspected the site. They confirmed the unit is suspected of using and operating the premises without passing fire safety inspections and are planning to file a case. The response was marked as confidential. A follow-up on September 4th indicated the case has been filed. Ms. Song, accompanied by a reporter, reported the situation to the local sub-district office. She plans to wait for the outcomes from the various regulatory bodies before deciding her next steps.