It used to be peak season around the end of year for catering and events at upscale hotels in China.

But frugality rules issued at the end of 2012 now ban government officials from misusing public funds for lavish spending in eight areas including annual dinner parties and meetings.

Hardly cause for celebration in the hospitality industry at the time, luxury hotels around the country have since figured out ways to survive the downturn, reshaping the industry with a focus on the general public and reasonable spending behavior.