International demand has surpassed pre-pandemic levels

• Supported by both domestic and international tourism demand, Shanghai’s hotel market continued to show positive momentum. In 2025, the city welcomed around 9.4 million international visitors, up 39.6% y-o-y and surpassing the 9.0 million recorded in 2019.
• According to government data, the city welcomed 6.8 million visitors during the New Year holiday, generating RMB 12.3 billion in total tourism revenue, with an average hotel occupancy rate of 70%.

In 2025, Shanghai witnessed the addition of 3,838 new rooms in the upscale and luxury segments

• In 2025, the city welcomed 3,838 new upscale and luxury hotel rooms. Of these, 1,145 rooms (30% of the total) were in the Hongqiao area, including key additions such as the Traders and Shangri-La Hotel (611 rooms).
• The Qiantan and Houtan areas contributed 783 new rooms (20% of the total), highlighted by the Waldorf Astoria (204 rooms).

Shanghai upscale hotel market bounces back

• According to the Shanghai Statistics Bureau, the city’s five-star hotels saw a 2.8 percentage-point year-over-year increase in occupancy, a 1.9% rise in average daily rate (ADR) and a solid 6.1% growth in revenue per available room (RevPAR) in 2025.
• Notable transactions in 2025 include the acquisition of Andaz Xintiandi by one of its shareholders and the RMB 900 million purchase of DoubleTree by Hilton Hotel Shanghai Pudong Shanghai by insurance investors.

Outlook: Certain markets may face intensified competition

• Shanghai’s tourism market has fully rebounded, with international visitor arrivals exceeding pre-pandemic levels and driving steady growth in hotel performance. However, concentrated new supply in certain areas may intensify competition, putting short-term pressure on hotel performance in specific submarkets.
• Investors are actively seeking value-added opportunities through property renovation and operational improvement. With stable cash flow expectations and capital appreciation potential, these projects are becoming an important asset allocation choice for investors. Hotel assets in core areas have received great attention due to their scarcity, risk resistance and value-added potential.