Growth in international demand

• The expanded visa-free policy kept driving inbound demand. From January to August this year, Shanghai welcomed 4.03 million international tourists, marking an increase of 110% compared to the same period last year.
• Family trips, summer study tours and others became the main growth points of summer travel demand. Shanghai Customs reported around 7.0 million inbound and outbound passengers during the 2024 summer period (1 July to 31 August).

Newly rebranded hotels open

• In the first three quarters of 2024, a total of 2,520 new rooms in upscale-and-above hotels were added, with approximately 990 more rooms expected to open in the remainder of the year.
• Notable repositioning and renovation projects that opened in the third quarter include Alila Shanghai (188 rooms), Hilton City Center (381 rooms) and voco Shanghai Zhangjiang (281 rooms).

Shanghai’s upscale hotel market shows continued recovery

• YTD September 2024 RevPAR citywide continued to improve from the same time last year, mainly led by a rise in occupancy that offset softened ADR levels.
• Hotels in Shanghai continue to gradually close the gap in trading performance with pre-pandemic times. However, the pace of recovery remains slow.

Outlook: Strong investment from the government will support recovery

• Shanghai has implemented a robust injection of RMB 90 million into the accommodation sector. This initiative will undoubtedly accelerate recovery and send a strong message of market recovery and consumption upgrades.
• Hotel assets strategically located in core districts of Shanghai with stable cash flows are particularly favoured by high-net-worth individuals.