Nowadays, China has the tendency that more and more military-owned hotels are shifting toprivate hotels gradually over time. Military-owned hotels have various disadvantages.However, they also have many reasons to exist as well. This thesis aims to answer theresearch question on how the military-owned hotels can deal with the privatization tendencythrough the application of TQM systematically. Case study and literature review are used tofind out the answers to the research question. Two case hotels, one military-owned hotel andone private hotel, are considered in this thesis. In order to guarantee the privacy of the twohotels and their staff, the military-owned hotel would be called Hotel A, and the private hotelwould be called Hotel B. By reviewing various TQM theories, five important aspects in theparticular quality management system have been identified for the case hotels. Finally, ageneralized quality management system model is developed for Chinese Military-ownedhotels in order to make them survive in the competition with private hotels.