Shanghai tourism market sees strong demand in H1

• From January to June 2026, Shanghai recorded 5.31 million international visitors, a 27.8% year-on-year increase. 
• Holiday travel further underscored this momentum, with the Labor Day holiday attracting 16.9 million tourists, up 2.4% y-o-y, while the three-day Dragon Boat Festival drew 7.1 million visitors, up 9.9% y-o-y.

Shanghai sees three new hotel openings

• In H1 2026, the city welcomed 770 new upscale and luxury hotel rooms. Notable openings included Andaz Shanghai ITC in Q1, followed by Kimpton Shanghai 9 Tree Art Center and Shanghai Marriott Hotel Songjiang in Q2.
• Concurrently, the Hongqiao Jin Jiang Hotel was rebranded as a dual-branded property under Swissôtel Living and Handwritten Collection following renovations, while the Yangtze Boutique Shanghai completed its transition to the TUI Blue brand.

Shanghai hotel market delivers robust results

• According to the Shanghai Statistics Bureau, the city’s five-star hotel market recorded a year-to-date occupancy rate of 69.9%, while ADR increased by 5.6% to RMB 1,001.
• Shanghai accounted for 22% of China’s total transaction volume in H1 2026. Recent transactions indicate that private owners remain the most active investors.

Outlook: Strong demand fuels market confidence

• Shanghai is experiencing growth in visitor arrivals, supporting solid performance across the hotel sector. This momentum is creating favourable conditions for the development of hotel REITs.
• Shanghai remains the most attractive hotel transaction market, with investors showing a strong preference for assets with low total investment outlays in prime locations.