In 1930s, there were many restaurants in Xiguan, and the competition was fierce. Xing-hai Chen, a businessman who runs the "Ying Ji" teahouse in the former Guangfu South Road, plans to open a restaurant on a piece of land at the junction of Wenchang Road and Shangxiajiu. According to Xiguan people's old habit of opening a shop to do business, this location faces west, and the north is next to Wen Lan Academy. There are many money houses, gold shops, commercial warehouses and sour branch furniture stores around, and wealthy businessmen, Xiguan tycoons and famous families gather. It is the location of Longkou, occupying the best geographical position. After many twists and turns, this management treasure has finally succeeded, that is, it has realized its grand plan to open a restaurant. Xing-hai Chen conforms to the "Feng Shui" pattern of "fighting against three evils", and the restaurant faces southwest, hence the name Southwest Restaurant (the predecessor of Guangzhou Restaurant). With such a good location, Guangzhou Restaurant has achieved half its success.
Today, Laoxiguan Hotel, with a history of more than 80 years, has become a large-scale catering enterprise group including large-scale food production bases, high-end restaurants and dozens of chain food shopping malls, and ranks among the top ten hotels in China. Won the honorary titles of "China Time-honored Brand" and "Top Ten Catering in China".