Shanxi Merchants' architecture has a long history and is an important part of Chinese traditional architectural culture with unique regional characteristics. Nowadays, hotel industry is developing rapidly, hotel is an indispensable part of modern life, carrying an important function space. More and more attention is paid to hotel design in modern life, so it is very important to inherit traditional culture effectively in modern hotel design. Based on the study of Shanxi Merchants Culture and Shanxi Merchants compound architecture, as well as on a long field investigation of Shanxi traditional buildings, this paper makes a study on the architectural characteristics of Shanxi merchants' architecture, such as its architectural form, architectural layout, architectural decoration, and so on. This paper sums up the elements of traditional architecture effectively and discusses the deductions of architectural elements of Shanxi merchants in modern hotel design combined with the elements of contemporary art. It not only meets the needs of people for traditional culture, but also effectively reflects the regional cultural characteristics of Shanxi merchants.