Shanghai surges 14% in premium hotel development

Pictured: rendering of Sofitel Shanghai South.
According to the latest information from THP, Chinese metropolis Shanghai is steadily growing its upper segment hotel pipeline.

In the year since we last looked at the development data, the prospective key count has increased by 14% from 15,809 to 18,047 rooms.

Larger liking

In terms of pure project numbers, this total is up by 5% within the last 12 months, from 66 to 69 sites. This indicates that larger properties are in vogue.

Altogether these represent nearly US$2.7 billion worth of investment.

New supremacy

The vast majority of hotels are newbuilds, 86% of this high end pipeline, in fact. That equates to 59 properties, as opposed to nine refurbishments and one conversion.

Development is weighted almost equally between four and five star sites, with 34 upscale builds as against 35 luxury hotels.

Opening rush

Hotel developers are in a hurry to finish their Shanghai sites, with 68% of the pipeline under construction, that’s 47 builds. Plus another two properties are in pre-opening. Further back in the project process, 10 sites are in planning, six in pre-planning and four in a vision stage.

Expected delivery dates follow a similar pattern, with 26 due next year and 17 more in 2025. 2026 currently sees eight completions, while just two more are planned to finish by the end of this year. The remaining 16 are either slated for further in the future or have yet to be designated a delivery date.

Eyes on Shanghai

Shanghai is a target for many of the major hotel groups, with Hyatt Hotels Corporation topping the high end pile on a minimum of 13 developments. Hilton Worldwide and IHG Hotels & Resorts share second place on at least 10 apiece.

Looking at individual brands, Hilton Hotels & Resorts is the clear leader with six projects underway, at worst.

Significant sites

One notable development is a new luxury urban resort for Accor’s Sofitel Hotels & Resorts brand. Sofitel Shanghai South will encompass 293 keys with private balconies, and is due to open in 2025. The hotel will feature the brand’s signature modern French style, blended with Shanghainese traditional culture, while employing an environmentally sensitive approach to development.

Another site to watch out for in the eastern Chinese megacity is the 1,000-key Montigo Resort. The complex will cover a gross floor area of 227,000 sq m with a centrepiece of a 90,000 sq m alpine-themed ski and snow park, along with four themed hotels.