Jingdezhen of Jiangxi province has initiated an investigation into a hotel suspected of price gouging ahead of the upcoming National Day holiday after reports that some of its room rates had surged more than tenfold, leading to public outrage.

The incident was brought to light on Thursday evening when online posts revealed that prices at Space Hotel in Jingdezhen, had skyrocketed from around 90 yuan ($12) in September to approximately 1,000 yuan during the holiday period in the first week of October.

The local market regulatory administration said that the hotel's actions are suspected of violating China's pricing laws, prompting them to open a case for appropriate penalties in accordance with regulations.

The administration also announced that a comprehensive review of hotel pricing practices across the industry will be conducted.

As of Friday, the hotel was not listed on major booking platforms.