Whether it’s a weekday or a weekend, a two-night stay at almost any luxury hotel along Shanghai’s Bund can easily cost RMB 7,000–8,000 (about USD 1,000–1,200), while rooms with the best views can approach RMB 10,000 (about USD 1,500).
So why are these luxury hotels becoming increasingly expensive?
At The Shanghai EDITION, the guests lining up at the front desk to check in and those waiting for their rooms in the lobby bar were almost all international visitors. Chinese guests, by comparison, were few and far between.
A concierge casually remarked that this was actually a relatively quiet period. During peak season, more than 80% of the guests are from overseas.
After speaking with staff at several hotels, one thing was clear: the growth in international demand has become the new normal. The Bund, in particular, is regarded as a “must-see” attraction in Shanghai, and most international visitors choose to spend at least one night in the area.
At hotels such as The Peninsula Shanghai and Bulgari Hotel Shanghai, which have long been popular with celebrities, international guests often account for more than half of the clientele. Head to almost any rooftop bar offering views of Shanghai’s iconic skyline in the evening, and most of the guests are international visitors.
Many of them find China’s luxury hotels almost unbelievably affordable.
Take the Ritz-Carlton, for example. Rates at properties in New York and Boston can start at around USD 1,000 a night, while comparable stays in China can often be found for USD 200–400. During the summer, luxury hotels in Rome and Venice can easily cost more than RMB 10,000 (about USD 1,500) a night, often with an additional tourist tax on top.
China’s fiercely competitive hotel market has forced luxury properties to compete aggressively on price. For travelers from Europe and the US, whose spending thresholds are significantly higher, even after recent price increases, luxury hotel stays in China remain considerably more affordable than in many major international destinations.
