International demand grows, but still below pre-pandemic level

• Supported by both domestic and international tourism demand, Shanghai’s hotel market continued to show positive momentum. From January to September 2025, the city welcomed 6.3 million international arrivals, up 37.1% y-o-y. However, arrivals remain 3% below 2019’s YTD level.
• According to the government’s data, during the Golden Week holiday in October, the city received a total of 25 million visitors, representing a 19.7% y-o-y growth.

The city is scheduled to see approximately 1,300 more upscale hotel rooms in the remainder of the year

• In Q3 2025, several new hotels opened, including Hotel Indigo Shanghai Dishui Lake (182 rooms), Traders Shanghai Hongqiao Airport (520 rooms) and Mumian Shanghai Expo (329 rooms).
• Approximately 1,300 additional rooms are expected to enter the market in Q4, with notable additions including Waldorf Astoria Qiantan (203 keys) and Thompson Expo (255 keys).

Shanghai upscale hotel market bounces back

• As of September, according to the Shanghai Statistics Bureau, the city’s five-star hotel occupancy rate rose y-o-y. Although the average daily rate (ADR) saw a minor decline, revenue per available room (RevPAR) posted modest growth of nearly 4%. This indicates that the market is demonstrating resilience and recovery momentum.
• Hotel assets strategically located in core districts of Shanghai with stable cash flows are particularly favoured by HNWIs. Existing urban hotels with the potential for repositioning are still attractive to multifamily investors.

Outlook: Continued strong cautiousness in hotel performance

• Despite a notable rebound in both business and leisure travel in the summer and Golden Week holiday, which has helped revive the industry, most hoteliers remain cautious on 2025 full-year revenue due to a slow recovery of the food and beverage segment.
• According to JLL’s _Hotel Operators Sentiment Survey 2025–2026_, hoteliers show modestly improved confidence in the market, but overall sentiment remains cautious.