Brand Competitiveness possesses great significance and exerts great impact upon the development process of the lodging industry, and it also has the practical significance for improving theory category and enhancing strategy of the competitiveness of the lodging industry brand. This article based on the analysis of the brandy development background of the lodging industry in Shandong Province, focuses on the current situation including the small-scale, weak competitiveness and lack of management experience that the modern lodging industry in Shandong Province faced with in the brand development, and then builds competitiveness evaluation index system of the lodging industry brand in Shandong Province from three aspects of the management capabilities, the products and services and the brand and marketing, and determines the selected evaluation of the lodging industry, combines with the development characteristics and the current situation and the emerging problems of the budget hotels in Shandong Province, finally summarizes the feasible strategies and the development countermeasures for the promotion of the local lodging industry brand competitiveness in Shandong Province.