Growth in international demand

• Relaxing visa policies have been a key driver for inbound tourism in China. From January to November 2024, Shanghai welcomed 5.97 million international tourists, marking an increase of 86.4% compared to the same period the previous year.
• According to external source, the 2024 CIIE drew 3,496 exhibitors from 129 countries and regions, featuring 297 Fortune Global 500 companies and 
  industry leaders.

A total of 4,002 new rooms open in 2024

• A total of 4,002 new upscale-and-above hotel rooms were added in 2024. Hotel projects that opened in the fourth quarter include Cordis SeaWorld (274 rooms), Hilton Hongqiao Airport (300 rooms) as well as the first Vignette Hotel (272 rooms), located next to the world’s largest indoor skiing resort in Linggang.
• Around 4,500 new keys are planned to enter the market in 2025.

Shanghai‘s overall hotel market performance improves

• Shanghai Statistic Bureau reports, as of November 2024, the city’s five-star hotel room occupancy rate increased by 1.3 ppts y-o-y, the average room rate increased by 2.6% y-o-y, and the revenue per available room increased by 4.6% y-o-y, very close to pre-epidemic levels.
• Hotel investment volume in Shanghai reached approximately RMB 3.5 billion, and HNWIs were active in the market.

Outlook: Strong and positive signs of recovery

• With more favourable policies introduced, overseas travel to China goes viral, bringing more visitors to the Shanghai hotel market, which will accelerate the recovery and development of the hotel industry, sending a positive signal of a strong market recovery.
• Hotel assets strategically located in core districts of Shanghai with stable cash flows are particularly favoured by HNWIs. Existing urban hotels with the potential of repositioning are still attractive to multifamily investors.