Shanghai’s upscale lodgings market expected to continue impressive growth as the city adds attractions and events
While domestic travellers have greater budgets and a taste for upscale amenities, international-branded hotels still draw a large share of their guests from overseas
With more than 140 upscale international hotels and 45,000 luxury rooms, Shanghai boasts one of the densest concentrations of upscale lodgings anywhere. The market is expected to continue to grow as the city adds new attractions and events.
“Because of the opening of the Shanghai Disney Resort and a number of other projects, we’re expecting an increase in guests and in revenue,” says Richard Greaves, general manager of the Grand Hyatt Shanghai and area vice-president.
There’s been a steady increase in premium properties, says Silvio Rosenberger, general manager of the JW Marriott Hotel Shanghai at Tomorrow Square and chairman of the Marriott International East China Business Council. Marriott has 20 hotels in the city.
The city attracts business and leisure clients because it is a city of contrasts, adds Rudy Oretti, general manager of the Waldorf Astoria Shanghai on the Bund. He cites the contrast between the “heritage buildings on the Bund and the modern architecture in the Lujiazui Financial and Trade Zone” as an example of East meeting West in a way that inspires something new.
While domestic travellers have greater budgets and a taste for upscale amenities, international-branded hotels still draw a large share of their guests from overseas. “We have 59 per cent of our guests from mainland China, 13 per cent from the United States, and 6 per cent from Hong Kong, Great Britain and Singapore,” Oretti says.
It’s a market mix that is evolving, Rosenberger adds. Customers are skewing younger, towards “people who have accomplished something in life, people who are accomplishing their goals much earlier in life”.
Business travel dominates the high-end market. “Most of our hotel guests are travelling on business here for meetings and events,” Greaves says. While he predicts this will continue, the Grand Hyatt “has introduced promotions aimed at leisure travellers like weekend and holiday packages, activities and social events”.
