2021 IBHS Shanghai Hotel Market Update by JLL (FINAL)

IBHS 2021 Survey
September 2021
Prepared for IBHS
JLL Hotels and Hospitality Group
Introduction and Disclaimer
Report
International Branded Hotels of Shanghai Association Limited (thereafter referred to as “IBHS’) has appointed JLL Hotels and Hospitality Group (“JLL”) to conduct a hotel
market study in Shanghai. JLL will provide a short-term market outlook of the five-and four-star hotels (“Study”). The Study is aimed to provide IBHS member with a high-
level understanding of key factors impacting Shanghai’s respective hotel submarkets. In undertaking the study, JLL has assessed current and projected market trading
performance. The scope of work included, but was not limited to, the following:
• Analyzing data gathered through a trading performance and market outlook survey sent to IBHS member hotels
• Conducting face-to-face interviews with various hotel General Managers and/or senior management of IBHS member hotels
• Researching and interpreting hotel demand and supply factors
• Utilization of JLL’s wider firm’s in-house market intelligence of Shanghai hotel market
Project Team
JLL’s Strategic Advisory team for this mandate is led by Tao Zhou (Managing Director, Head of Greater China) with support from Angel Chen (Vice President) and Shania
Huang (Associate).
Statement of Pecuniary Interest

We confirm that JLL has no pecuniary or other interest in the markets that would conflict with proper assessment or could reasonable be regarded as being capable of
affecting our ability to give an unbiased opinion. This position will be maintained until the purpose for which this Study is being obtained and completed.
2
Introduction and Disclaimer
Confidentiality
The report is confidential to the Client and it is a condition of its receipt that its contents and conclusions shall not be copied or divulged to any third party without the
consent of JLL and its Client. Any breach of this condition will be a breach of the Confidentiality Agreement between JLL, its Client and any other supplier of confidential
information whether a formal agreement has been entered into or not for this assignment.
Information Utilized
Our review is based on information developed from research of the markets, knowledge of the industry and information provided to us, which is integral to the outcome of
our estimations. We have also obtained data and information for this assignment from a wide range of resources. Whilst due care has been undertaken in the application of
this information, its accuracy cannot be verified by JLL.
Should it be revealed that any of this information is inaccurate or misleading so that its use would affect our Study, then JLL reserves the right to amend its opinions and
report. The sources and bases of the estimates and assumptions are stated in the body of the document. JLL has no responsibility to update this report for events and
circumstances occurring after the date of issuance.
Qualifications and Assumptions

This report is based on current as well as likely future conditions as perceived by the market. JLL does stress that the estimation of future market condition is challenging,
which, at best, should be regarded as an indicative assessment of possibilities rather than absolute outcomes.
3
Table of Content
5
21
37
48
53
58
63
68
73
78
83
92
4
5
Luxury Hotel Performance
As at YTD Jul 2021, Shanghai luxury hotel market achieved a 截至2021年7月，上海奢华酒店市场的每间可出租客房收入为
RevPAR of 910 RMB, with an ADR of 1,500 RMB and an 910元人民币，日均房价为1,500元人民币，入住率为60%。
occupancy of 60%. The current RevPAR was 30% behind one in 目前的每间可出租客房收入水平落后于2019年约30%，主要
2019, mainly due to 17% and 16% decreases in Occ. and ADR. 原因是入住率和日均房价分别下降了17%和16%。
JLL notes that hotel ADR keeps fluctuating, while demand grows 仲量联行指出虽然酒店日均房价不断波动，但需求仍以稳定
at a stable pace. Monthly RevPAR variance between 2019 and 的速度增长。2019年和2021年之间的每月每间可出租客房收
2021 narrows. Hotel performance in July 2021 even surpassed 入差异缩小。今年7月的业绩甚至优于2019年7月。
July 2019.
2017 - YTD Jul 2021 Hotel Performance 2019-2021 Monthly RevPAR

2,000 80% 1,600 30%
1,800 70% 1,400 20%
1,600
ADR/RevPAR (RMB)
60% 1,200 10%

1,400
RevPAR (RMB)
50%
Variance (%)
1,200 1,000 0%
Occ.(%)
1,000 40%
800 -10%
800 30%
600 600 -20%
20%
400 400 -30%
200 10%
- 0% 200 -40%
2017 2018 2019 2020 YTD Jul YTD Jul YTD Jul - -50%
2019 2020 2021 Jan Feb Mar Apr May Jun Jul Aug Sep
ADR (RMB) RevPAR (RMB) Occupancy (%) 2019 2020 2021 Variance (2021 vs 2019) 6
Upscale Hotel Performance
As at YTD Jul 2021, Shanghai upscale hotel market achieved a 截至2021年7月，上海高端酒店市场的每间可出租客房收入为
RevPAR of 542 RMB, with an ADR of 914 RMB and an occupancy 542元，日均房价为914元，入住率为59%。目前的每间可出
of 59%. The current RevPAR level was 28% behind one in 2019, 租客房收入水平落后2019年约28%，主要原因是入住率和日
mainly due to 16% and 15% decreases in occupancy and ADR. 均房价分别下降了16%和15%。
Even the domestic demand revived, the slow and fluctuating ADR 即使国内需求复苏，日均房价缓慢且波动的复苏，让每间可
recovery slows the overall RevPAR recovery. However, similar to 出租客房收入的复苏也变得迟缓。然而，与奢华市场类似，
the luxury market, monthly RevPAR variance between 2019 and 2019年和2021年之间的每月每间可出租客房收入差异缩小。
2021 narrows. In particular, July 2021 outperformed July 2019. 今年7月的业绩甚至优于2019年7月。

1,200 80% 900 30%
70% 800 20%
1,000
ADR/RevPAR (RMB)
60% 700 10%

800
RevPAR (RMB)
50% 600
Variance (%)
0%
Occ.(%)
600 40% 500
-10%
30% 400
400 -20%
20% 300
200 200 -30%
10%
100 -40%
- 0%
2019 2020 2021 Jan Feb Mar Apr May Jun Jul Aug Sep 7
ADR (RMB) RevPAR (RMB) Occupancy (%) 2019 2020 2021 Variance (2021 vs 2019)
Hotel Market Supply
As the COVID-19 situation have eased, there will be 3,018 rooms 随着国内疫情的缓解，将有3,018间客房在2021年下半年入市。
entering the market in the rest of 2021. More than 8,000 rooms 未来2022-2023年超8,000间客房将进入市场。
are in the future pipeline for 2022-2023.
As at YTD July 2021, some notable openings include the 265- 截至2021年7月，一些著名的开业酒店包括东方美谷JW万豪
room JW Marriott Fengxian, 233-room J Hotel Shanghai Tower 酒店（265间），上海中心J酒店（233间）和松江广富林希尔
and 244-room Hilton Shanghai Songjiang Guangfulin. These 顿酒店（244间）。这些地标型和度假型酒店占新增客房量的
landmark and resort hotels account for nearly 40% of the total 近40%。
new supply.
2015-2023F Shanghai Hotel Market Supply (Upper-midscale above) 2015-2023F Hotel Pipelines
140,000 8,000
120,000 7,000
6,000
100,000
5,000
Rooms
Rooms
80,000 4,000
60,000 3,000
40,000 2,000
1,000
20,000
-
- 2015 2016 2017 2018 2019 2020 YTD Jul 2021F 2022F 2023F
2015 2016 2017 2018 2019 2020 2021F 2022F 2023F 2021
Existing Supply Recently Added Future Supply Recently Added Net Future Supply
8
Notable openings in 2021
J Hotel Shanghai Tower
上海中心J酒店
（233间）
位于世界第二、中国第一高楼的上海中心大厦的顶
端，也是目前全球最高酒店之一。
It is located at the top of Shanghai Center, the world's
second and China's tallest building. It is also one of the
highest hotels in the world.
Hilton Shanghai Songjiang Guangfulin

松江广富林希尔顿酒店
（244间）
坐落于广富林文化园区内部，自东向西依湖而筑围
绕两处园林布局，紧邻景区核心景观。
It is located in Guangfulin Cultural Park. It is built along
the lake, surrounded by two gardens and close to the
core of the scenic spot.
JW Marriott Fengxian
东方美谷JW万豪酒店
（265间）
位于奉贤核心的上海之鱼，并面朝风景如画的金海
湖和奉贤博物馆。
It is located in the core of Fengxian, faces the
picturesque Jinhai lake and Fengxian Museum.
9
IBHS Hotel Performance
As at 2021H1, the overall RevPAR recovery is 70.6%, comparing 截至2021年上半年，每间可出租客房收入的恢复率为70.6%
to pre-COVID situation in 2019. Submarkets with greater （对比疫情前的2019年上半年）。细分市场中，如浦西北、
domestic demand are more resilient, such as Puxi North, 虹桥，恢复得较好，这是由于这些市场有较强的国内需求比
Hongqiao. Better performance and greater recovery for Hotels in 例。郊区酒店表现出相对其它细分市场更好的表现和复苏，
outskirt stem from pent-up leisure demand from the local and 这源于当地和周边地区被压抑的休闲需求。
the surrounding areas, particularly for hotels in outskirt.
The overall occupancy and ADR recovery rates are 83.5% and 市场整体入住率和日均房价的恢复率分别为83.5%和87.3%。
87.3% respectively. Loss of international arrivals impacts the ADR 国际游客的减少影响了日均房价的恢复，但国内游客的强劲
recovery but the strong demand from domestic travelers helps to 需求也助力维持日均房价的水平。
sustain the ADR level.
2021H1 vs 2019H1 Recovery Level across different submarkets
01 Puxi Center 02 Puxi North 03 The Bund 04 Hongqiao 05 Lujiazui 06 Pudong Center 07 Outskirt
Occupancy
84.4% 80.7% 72.5% 91.2% 75.6% 71.2% 109.2%
(Average = 83.5%)
Occ. Ranking 3 4 6 2 5 7 1
ADR
81.6% 94.8% 89.9% 83.8% 89.1% 86.5% 84.4%
(Average = 87.2%)
ADR Ranking 7 1 2 6 3 4 5
RevPAR
68.9% 76.5% 65.2% 76.5% 67.4% 61.6% 92.1%
(Average = 70.6%)
RevPAR Ranking 4 2 6 2 5 7 1
Green means above average; red means below average. 10
Market Sentiment
The survey shows more than 90% stand confident in the future 调查显示，即使多数都认为2022年国门将继续关闭，但是超
ADR and occupancy from corporate, MICE, and leisure demand, 过90%的酒店业者仍对未来的企业、会议会展和休闲需求的入
even most believe borders will remain shut in 2022. However, 住率和日均房价充满信心。然而，客房需求的预订窗口可能
demand’s booking window may remain stable and stay as short 还是保持和目前一样较短的时间。
as it is now.
Corporate Demand – Demand Outlook MICE Demand – Demand Outlook Leisure Demand – Demand Outlook
YTD 2021H1 Average Range YTD 2021H1 Average Range YTD 2021H1 Average Range
Booking Window (Days) 4.1 1-20 Booking Window (Days) 13.9 2-40 Booking Window (Days) 4.3 1-30
2022 F* 2022 F* 2022 F*
Window
Window
Window
34% 61% 42% 55% 37% 55%
Booking
Booking
Booking
2021H2 F* 21% 68% 2021H2 F* 29% 61% 2021H2 F* 26% 66%
2022 F* 50% 42% 2022 F* 65% 27% 2022 F* 68% 29%

ADR
ADR
ADR
2021H2 F* 50% 47% 2021H2 F* 54% 35% 2021H2 F* 53% 45%
Occupancy
Occupancy
Occupancy
2022 F* 66% 24% 2022 F* 71% 21% 2022 F* 46% 32%
2021H2 F* 59% 30% 2021H2 F* 68% 24% 2021H2 F* 57% 32%
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
11
Average Length of Stay (ALOS)
Due to the loss of international arrivals, the average length of 由于国际客源的减少，酒店平均停留时长减少。此外，比起
stay (ALOS) decreases. Moreover, as leisure guests prefer the “2 在同一家酒店住2-3个晚上，休闲客人更喜欢“2天1夜”住宿套
Days, 1 Night” Staycation package instead of a hotel stay of 2-3 餐，因此国内客源对停留时长的延长帮助有限。多数预估短
nights, domestic demand barely helps the ALOS. Most anticipate 期停留时长将保持稳定。
short-term ALOS remains stable.
Puxi center and the Bund area both show the highest ALOS in 浦西市中心和外滩地区在新冠疫情前后的酒店平均停留时长
Pre- & Post- COVID time, which shows business and leisure 都最高，这表明商务和休闲旅客更喜欢在这些地方留宿。
travelers prefer staying at Puxi center for convenience.
2019 – 2020 Short-term Length of Stay across different submarkets 2021 Forecasted Short-term Length of Stay
2.5 2.3 10.0%
2.2 2.1
5.0% Slightly decrease
2.0 1.9 1.8 Sharply increase
20%
0.0% 5%
1.5 1.6 1.5 1.5
1.4 1.5 1.5
1.5 1.3 1.3 -5.0%
Days
Slightly
1.0 -10.0% increase
-15.0% 34%
0.5
-20.0%
0.0 -25.0%
Puxi Center Puxi North The Bund Hongqiao Lujiazui Pudong Outskirt
Center
2019 2020 Variance Stable 12
41%
Undistributed Costs and Expenses
As at YTD 2021H1, the average indices of undistributed costs 截至2021年上半年，未分配成本和费用的平均指数符合行业
and expenses are aligned with the industry standards. Most 标准。大多数酒店预测未分配成本和费用可能保持稳定或略
hotels predict undistributed costs and expenses may either stay 有增加。
stable or increase slightly.
Cost as Percentage of Total Revenue 2021H2 Forecasted Cost as Percentage of Total Revenue
Luxury Upscale 100%
2019 Average Range Average Range 10% 10% 10% 7%
90% 14%
Administration & General 8.2% 10.3% - 5.2% 11.7% 30.2% - 2.3%
Sales and Marketing 6.9% 10% - 4.2% 6.7% 25.6% - 2.7% 80%
Utilities 4.0% 5.9% - 2.5% 5.8% 8.9% - 3.0% 70% 29%
33%
Repairs & Maintenance 2.7% 4.3% - 1.7% 3.1% 5.2% - 0.6% 38%
36% 43%
60%
Management Fees 3.4% 4.7% - 1.2% 3.3% 5.4% - 1.6%
Luxury Upscale 50%
2020 Average Range Average Range 40%
Administration & General 10.8% 21.9% - 4.5% 18.4% 49.1% - 2.6% 30% 45%
Sales and Marketing 7.5% 9.1% - 5.6% 6.7% 31.3% - 0.6% 33% 40%
20% 36% 26%
Utilities 6.0% 11.5% - 3.2% 7.9% 16.5% - 1.7%
Management Fees 2.7% 4.6% - 1.2% 2.5% 3.7% - 0.4% 0% 5% 2% 2% 2%
Luxury Upscale A&G S&M Utilities Repairs & Management
2021H1 Average Range Average Range Maintenance Fees
Administration & General 7.5% 10.6% - 5.0% 16.3% 46.8% - 2.0%
Sharply increase Slightly increase Stable Slightly decrease
Sales and Marketing 6.8% 8.6% - 5.5% 6.6% 24.8% - 1.9%
Utilities 4.1% 4.8% - 2.9% 6.0% 10.8% - 2.3%
Repairs & Maintenance 3.7% 6.1% - 1.8% 3.2% 7.3% - 0.3% Hotel Classification by Average Daily Rate : (in RMB)
Luxury: 2019 ADR above ≥ 1,333 || Upscale: 2019 ADR= 402 - 1,333 13
Management Fees 3.8% 4.5% - 3.4% 3.2% 4.2% - 2%
Source: IBHS Surveys
Wedding Demand and Performance
Shanghai marriage registrations declined annually at a CAGR of - 上海的婚姻登记每年都以6.1%的复合增长率下降。因此，酒
6.1%. Thus, hoteliers anticipate a soft wedding business in 2022 店业者预计2022年的婚礼业务将较为疲软。
due to decreasing demand.
According to Tencent whitepaper, newlyweds prefer to host 据腾讯白皮书，新婚夫妇更喜欢举办小型婚宴，规模已经下

small wedding banquets. The scale has declined to 10-20 tables. 降到10-20桌。IBHS调查也显示了类似的趋势。
IBHS survey also shows a similar trend.
The wedding banquet budget remains stable, around 7,000- 婚宴预算保持稳定，每桌7,000-10,000元不等。

10,000 RMB per table.
2015-2020 Marriage registration in Shanghai 2019 – 2021H1 Average Wedding Size 2019 – 2021H1 Average Number of Wedding per Venue
16 300 80
Number of wedding per venue

14.2
Number of attendee
250 70
14
Number of marriage registration
12.5 60
200 50
12 10.9
(X 10,000/Couples)
10.4 150 40
9.9
10 9.2 100 30
20
8 50 10
6 0 0
0 14
2019 2020 YTD Jun 2019 YTD Jun 2021 2019 2020 YTD Jun 2019 YTD Jun 2021
2015 2016 2017 2018 2019 2020
Trends and Outlook
Hotels anticipate better ADR and 酒店预计与2021年相比，2022
Occ. in 2022, comparing to 2021, 年的日均房价和入住率会有所增
but it’s hard to fully recover to 长，但是很难完全恢复到2019
the 2019 level. 年的水平。
Even COVID-19 has become a ‘NEW 即使疫情已经成为一种“新常态”，但酒店
NORMAL’, the hotel and tourism industry 和旅游业在疫情随时可能反复的情况中仍
remains volatile amid resurgent infections. 然不稳定。使酒店业完全恢复到2019年
Pre-conditions need to be fulfilled in order 的水平需要一些前提条件，如群体免疫和
to make hotel industry fully recovered to 全球旅客的自由流动等。
2019 level, like herd immunity and free
traveler circulation globally, etc.
COVID-19 booster inoculation 疫苗加强针（第3剂）

(the 3rd dose)
It may greatly help China to better control 这可能极大地帮助中国更好地控制病毒感
its infections and boost people and the 染，提高人民和政府的旅游信心。
government’s travel confidence.
Shanghai economy improves. 上海经济向好。

Amid COVID-19, Shanghai's real GDP 2020年疫情暴发以来，上海的实际GDP仍
continued to increase against the trend. 然逆势增长。据Oxford Economics，2021
According to Oxford economics, real GDP is 和2022年的实际GDP将分别增长8%和5%。
anticipated to grow by 8% and 5% in 2021
15
and 2022, respectively.
浦东美术馆 MUSUEM ART PUDONG
Trends and Outlook

“Hotel + F&B + Attractions” is the “酒店+餐饮+吸引物”是趋势。
trend. “Attractions” is key anchor “吸引物”是客户购买的关键。
to attract guests.
Hotels are encouraged to design more 酒店须设计更具创意的住宿套餐以更好地
creative staycation packages to better 吸引本地客源和回头客。酒店应强调增值
attract the local and the repeating guests. 的“吸引物”，如旅游景点的门票(上海天文
Hotels shall emphasize the value-added 馆，浦东美术馆等）, 特别展览及活动(扎
“Attractions”, like tourism spots ‘ tickets (上哈-哈迪德建筑事务所展，上海双年展,
海天文馆，浦东美术馆, etc), special 等），网红餐厅预订和合作等。
exhibitions and events (扎哈-哈迪德建筑事
务所展，上海双年展, etc), trending
restaurant booking (网红店合作), etc.
Think out of the box! Enhance its 跳出惯性思维！加强产品特色和

product specialty and visibility 知名度
The regular strategy is to package the 酒店的惯性思维是将标准房型进行住宿套
standard room first, but few hotels are 餐的打包。部分酒店是反其道而行，将高
doing something unique. They package and 价位房型先打包售出。这些舒适、宽敞的
sell high-priced rooms first. These 行政房或套房，通过酒店的装饰，从无趣
comfortable and spacious executive rooms 标准化的客房变成时髦特色个性化的客房。
or suites, through the decoration, have 这些吸引网红、淘宝卖家、网络主播来入
changed from boring and standardized 住或短期租赁这些客房。
settings into fashionable ,and customized
rooms. These could attract KOL, Taobao
sellers and web anchors to stay or lease the 16
rooms for days.
Trends and Outlook
Vacant space also generate 闲置空间也能创收。
revenue.
Hotels could make full use of vacant space. 酒店应充分利用闲置空间。例如，将大堂
For example, hotels turn lobby into gallery, 变成画廊，增强独特的艺术氛围。被吸引
enhancing its unique and artistic ambiance. 过来的人都是潜在的消费者。JLL拥有多
People being attracted to the hotel are all 种零售和娱乐资源，可帮助酒店释放收入
potential spenders. JLL has a variety of retail 潜力。
and entertainment resources, which could
help hotels to unlock revenue potential.
IP Collaboration IP 合作
Lots of beverage stores, like Hey Tea, have 许多饮料店，如喜茶，经常其它IP合作。
been frequently collaborating with other IP合作是一种趋势。仲量联行已向其客户
IPs. IP collaboration is a trend. JLL has 对接了国内头部互动娱乐的资源。将从浅
connected China’s leading interactive 层合作，如游戏IP、电竞主题房等至未来
entertainment resources to its clients. They 探索深度合作，如共同打造游戏电竞主题
have discussions on collaborations like game 酒店。
IP, E-sports themed rooms, etc. They may
even explore further, like building a E-sports
themed hotel.
Online F&B Opportunities 线上餐饮机遇
Hotels could explore more revenue 酒店可以探索更多的线上收入机会，如与
opportunities online, such as F&B 美团、饿了吗、携程等的餐饮合作。
collaboration with Meituan, Elema, Ctrip,
etc. 腾讯娱乐 17
Trends and Outlook
Newly-weds buy personalised 新人们为定制婚礼体验消费，而
wedding experiences, not the 不是仅仅一个婚礼场所而已。
wedding venue.
Wedding personalisation is the trend. 个性化婚礼是一种趋势。新人们愿意花更
Newly-weds are willing to spend more 多的钱在婚礼策划、酒店品牌、礼物和摄
money on wedding planning, hotel 影等方面。包括上述内容的独特婚礼套餐
branding, take-home gifts and photography, 将是一个很好的市场策略。
etc. Unique wedding packages which
include the above will be a good market
strategy.
Wedding info and hotel capability 婚礼资讯和酒店的承接能力需要

need more online exposure. 更多线上的曝光率。
Due to the COVID-19 pandemic, 94% of 由于疫情，94%的婚礼相关信息来自线上
wedding-related information comes from 渠道。建议从只与代理商合作改为通过微
online channels. It is suggested to change 信商城等线上模式，提供创新套餐。
the old norms from only collaborate with
agencies to offering innovative packages via
Wechat Mall, etc.
Benchmark wedding revenue 婚宴营销应注重投报率。

against marketing investment
Hotels are encouraged to analyse their 部分酒店的所在区域可能没有很强的婚宴
return on investment for each S&M 需求，所以鼓励酒店分析每次S&M活动
campaign. Few hotels would decrease 的投资回报。某些酒店表示将减少对婚礼
18
investment in wedding advertisements. 营销的投资。
Trends and Outlook
Cost management to secure hotel 成本控制来保护酒店现金流。
cash flow.
As global market and health environment is 由于近年全球市场和疫情环境极有可能难
of high possibility difficult to support 以支撑上海酒店市场的全面复苏，相较
Shanghai hotel market to its entire recovery, 2019年，酒店继续努力维持收入。截至
shanghai hotels continue to suffer loss in 2021年上半年，平均GOP%仍比2019年上
top-line. As at 2021H1, Shanghai average 半年的水平低22%。因此，建议酒店加强
GOP% is still 22% behind its 2019H1 level. 成本管理。
Thus, hotels are recommended to
strengthen cost management.
Shanghai 2019 2020 2020 vs 2019 2019H1 2021H1 2021H1 vs 2019H1
GOP% 32% 13% -59% 35% 27% -22%
Reduce unnecessary costs 减少不必要的成本

Hotels with a higher percentage of room 客房收入比例较高的酒店应具有较高的
revenue should have greater GOP%. JLL GOP% 。 JLL 注意到，一些酒店总收入的
notice some hotels have over 70% of the 70%以上来自客房，但其GOP%接近甚至低
total revenue is from rooms, but their GOP% 于市场平均水平。因此，酒店可以提升餐
is close to or even lower than the market 饮收入或者更好地管理相关成本。
average. Thus, hotels could monitor either
increase its F&B revenue or better manage
the relative costs.
Trends and Outlook
Explore opportunities from new 从新的企业客户中发掘机会
corporate accounts
Some hotels ‘ corporate accounts are signed 一些酒店的企业客户是几年前签订的，价
years ago, and rates stay the same for years. 格多年不变。建议酒店经常探索新的商务
Hotels are recommended to frequently 客源机会。
explore new opportunities.
Membership is a tool to free S&M 会员是个工具，使S&M团队获

team’s time for more possibilities. 得更多时间创造收入可能性。
Branded hotels take great advantage of 品牌酒店充分利用其会员客源。会员以较
their membership. They come to stay at a 低的费用来住旅馆。如果会员占客户群的
hotel with a lower cost. If membership 很大部分，销售团队可以腾出更多的时间
accounts for a large portion of the client 来发展业务，比如餐饮和婚礼。
base, the sales team could spare more time
to develop the business, like F&B outlets
and weddings.
High-yielding segments should be 高收益客源应优先考虑。

prioritized.
Hotels are recommended to monitor their 建议酒店监控其高收益细分市场和各自的
high-yielding segments and the respective 季节性。酒店尤其需要监控品牌会员的兑
seasonality. In particular, hotels need to 换率。这些低收益部分不应妨碍酒店接受
monitor the brand member redemption 其他高收益客人。
rates. These low-yielding segments should
not hinder hotels to accommodate other
guests. 20
21
Hotel Performance Benchmarking
Shanghai, a market mix of business, MICE and leisure, sees recovering at a slower pace comparing to leisure destinations; limited inflow
of international arrivals is another reason for its slow recovery in 2020.
Shanghai Upscale Market Performance Benchmarking (2020 vs 2019)

(ADR) (RevPAR)
1 2 3 4 5 6 7 1 2 3 4 5 6 7
Beijing Shanghai Shenzhen Guangzhou Suzhou Hangzhou Nanjing Beijing Shanghai Shenzhen Guangzhou Suzhou Hangzhou Nanjing
Jan -1 1 -6 5 -9 2 1 Jan -23 -24 -31 -15 -31 -18 -15
Feb 11 -2 9 -11 -26 -5 0 Feb -91 -92 -93 -91 -92 -88 -88
Mar -17 -16 -6 -14 -16 -3 -9 Mar -91 -90 -86 -86 -84 -81 -76
Apr -30 -25 -15 -36 -19 -15 -12 Apr -91 -82 -74 -84 -74 -67 -62
May -17 -20 -18 -26 -19 -13 -11 May -75 -66 -56 -68 -58 -41 -47
Jun -17 -19 -17 -14 -17 -10 -12 Jun -76 -58 -42 -45 -48 -29 -40
Jul -18 -13 -13 -11 -14 -4 -10 Jul -81 -32 -25 -27 -33 -5 -27
Aug -18 -9 -9 -8 -9 2 -8 Aug -58 -16 -18 -16 -16 7 -10
Sep -15 -18 -13 -8 -20 -8 -8 Sep -33 -28 -19 -9 -23 -6 -9
Oct -18 -12 -13 -33 -8 3 -5 Oct -34 -21 -26 -41 -6 8 -6
Nov -17 -19 -14 -13 -10 -2 -7 Nov -36 -49 -22 -23 -18 2 -13
Dec -11 -12 -5 -3 -8 3 -1 Dec -28 -35 -9 -5 -14 9 2
Beijing reported several confirmed cases. • In 2020, hotel market performance got seriously impacted if the place is exposed to any confirmed cases. Its occupancy dropped very quickly.
→ Plunge in market occupancy and RevPAR Market performance is sensitive to COVID-cases.
• Some hotels attribute ADR decreases to weaker demand, loss of international arrivals and lower budget from the domestic needs. ADR may
take a while to recover.
Shanghai reported several confirmed cases.
• Shanghai and Beijing hotel markets are strongly supported by corporate demands and business activities, hotel performance correlates to
→ Plunge in market occupancy and RevPAR its announced travel restrictions.
22
Source: STR
Hotel Performance Benchmarking
As at YTD Jul 2021, Shanghai upscale hotel market achieved a RevPAR of 542 RMB, which is 37% lower from the same period in 2019.
Shanghai is one of the last recovered markets due to its large weight of international arrivals.
Upscale Hotel RevPAR Benchmarking
2019 vs 2020 YTD Jul 2019 vs 2020 vs 2021
1,000 0% 1,000 0%
900 900 -5%
-10%
800 800
-10%
700 -20% 700
RevPAR (RMB)
RevPAR (RMB)
Variance (%)
-15%
Variance (%)
600 600
-30%
500 500 -20%
400 -40% 400 -25%
300 -50% 300
-30%
200 200
-60% -35%
100 100
0 -70% 0 -40%
2019 2020 Variance 2020 vs 2019 YTD Jul 2019 YTD Jul 2020 YTD Jul 2021 Variance YTD Jul 2021 vs YTD Jul 2019
• Shanghai upscale above market demand is a mix of business, MICE, leisure and some airline • The first half-year of 2021 continues to see recovery in RevPAR due to rising demand. As of
crews. Moreover, most of them had a huge share of oversea guests, weighing 40-50%. Thus, YTD Jun 2021, RevPAR recorded at 511 RMB, lacking 32% from the same level back in 2019.
the Shanghai market ‘s recovery met challenges with a y-o-y decrease in RevPAR of nearly • The performance gap could attribute to weak demand during CNY, lower ADR due to lack of
50%. international arrivals. However, July was a robust month making RevPAR 542 RMB.
• The Domestic market is the main generator of the regional hotel markets. Thus, their YTD Jul
23
2021 variances were better recovered than the tier-1 cities, which were driven by more
international guests.
Source: STR (Due to 2020 is a special pandemic year, it is more relevant to use 2019 data to benchmark 2021.)
International Arrivals
Tourism arrivals plummeted during COVID-19, but Shanghai’s international demand has begun to recover after the use of vaccination.
2015 – Jul 2021 International Visitor Arrivals 2015 – Jul 2021 International Visitor Arrivals Seasonality
1.0
Visitor Arrivals (million)

10 40%
20%
Y-o-Y Variance (%)

8
0%
0.5
6 -20%
4 -40%
-60%
2 -
-80% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0 -100% 2015 2016 2017 2018 2019 2020 2021
2015 2016 2017 2018 2019 2020 YTD Jul YTD Jul
International Arrivals Y-o-Y Variance 2020 2021
• Visitor arrivals reached a record high of 8.97 million in 2019, reflecting y-o-y growth of 0.4%. The 3rd China International Import Expo
However, due to the pandemic, visitor arrivals have plummeted by up to 86% in 2020.
• Although there are still strict travel restrictions across nations, international arrivals have begun to Participating companies: 400 10%
recover since the beginning of 2021. Moving forward, with the spread use of vaccination, the
international visitor arrivals are expected to maintain the growth. Exhibition area: 50,000 sqm 17%
• With the travel relaxation, the 3rd
China International Import Expo was held successfully in Nov 2020.
The was an international economic and trade event with the largest scale, the largest number of
participating countries, and the combination of online and offline under the conditions of normalization Participating companies: 80 12%
of epidemic prevention and control. 146 countries were invited, and many countries such as Japan and
France have high participation enthusiasm.
Exhibition area: 16,000 sqm 7% 24
Source: Shanghai Municipal Tourism Administration

Domestic Arrivals
The domestic market starts to bounce back. The market is expected to recover strongly in 2021 if virus containment is well-executed.
2010-2020 Domestic Visitor Arrivals 2010-2020 Total Visitor Arrivals

400 80%
400 80%
350

350 60%
60%
300
300 40%
Growth Rate (%)

40%
Growth Rate (%)

250 250
20% 20%
200 200
0% 0%
150 150
-20% -20%
100 100
50 -40% 50 -40%
0 -60% 0 -60%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Domestic Arrivals Growth Rate Domestic Arrivals International Arrivals Growth Rate
• The growth rate for domestic arrivals was constant around 7% from 2016 to 2019, resulting in a record high of 361.4 million in 2019. Domestic visitors have always been the major driver for Shanghai
market, recording 97.6% of the total figure in 2019. After the outbreak of COVID-19 and the strict border restriction, the portion of international arrivals decreased sharply, resulting in 0.5% of the total
figure in 2020.
• Since travel relaxations are being executed across provinces, the domestic market starts to resume. Shanghai becomes one of the most popular destinations during holidays. According to Shanghai office,
4.92 million tourists visited Shanghai and generated RMB 5.67 billion in revenue.
• As more and more people are getting vaccinated, the tourism market is expected to recover to the pre-COVID level soon.
Source: Shanghai Municipal Tourism Administration, Oxford Economics

Tourism Sights
Other tourism plans to boost leisure tourism.
Wintastar Ski Resort Discovery Science and Education Center Legoland Shanghai Disneyland Expansion
District - Pudong Year - 2022 District - Baoshan Year – 2022 District - Jinshan Year – 2024 District - Pudong Year – N/A
Wintastar, titled to be the world’s Discovery Science and Education The Legoland Shanghai project is Shanghai Disney announced the
largest indoor ski resort, is expected Experience Center will be officially expected to officially open in early second major expansion in the
to open in 2022. This entertainment settled in Baoshan Nanda Project. The 2024 and will become one of the beginning of 2019. The new
park, sited in Linggang, covers project plans to construct in three largest Legoland Resorts in the world. expansion will be sited in the eighth
227,000 sq.m. According to Chinese development phases, including The Legoland project consists of a land, bring its animated life ‘Zootopia’
snow industry travel expenditure big ‘Discovery Center". Lego theme park and a full-scene into life. The construction has
data report 2019, tourists who choose In Oct 2019, Discovery Media Group Lego theme hotel with no less than commenced in Dec 2019. However,
snow- and ski–related journeys are and its domestic partners have jointly 250 rooms. The resort will integrate the opening date is still pending
anticipated to grow to 340 million established the Discovery Cultural the unique elements of Chinese according to Disney.
from 2021-2022. According to Ctrip, Tourism China Headquarters to culture. The world-class creative, Disney has achieved 11.8 million
the top 10 demand source cities conduct overall planning for the design, and construction teams will visitors in 2018, which was 9% greater
include Shanghai, Nanjing and project. use sound, light and other than Chimelong Zhuhai Water Park.
Hangzhou. For these residents, snow According to the timeline of Nanda technologies to jointly create an Even though COVID-19 has caused its
and related activities are rare treats. master planning, the estimated immersive theme park with a story temporary closure has impacted its
Therefore, It is expected to attract 3.2 opening is in year 2022. theme. business in 2020. Thus, it is expected
26
million tourists annually. to attract more visitors once its
Source: Shanghai Municipal, News, Disneyland Official
expansion is completed.
Municipal Tourism Plans
Municipal Tourism Plans to drive tourism growth to restore the confidence of travelers and revive the tourism industry in the short run
and establish its international status in the long run.
Short-term Stimulus
1 Implement Tourism Support Plan to boost the consumption

• Organize marketing activities online to promote key business districts and
themed streets.
• Some scenic spots offer discounted fares. Medium-term Strategies
• Travel agencies offer themed itineraries to encourage internal and cross-
provincial tourism.
3 Develop multiple holistic tourism destinations
• After Songjiang and Huangpu were awarded as ‘National Tourism
Develop night economy
2 • Probe the nightlife, explore 24-hour business circles, hold special night
Demonstration Area’, Shanghai announced its first batch of 16.
demonstration areas of holistic tourism destinations in May 2020.
markets, organize museum sleepless nights, etc.
Fund innovative tourism projects
4 • The maximum funding is 5 million per project.
• Support tourism development projects to enhance its tourism image.
Long-term Strategies Collaboration of Yangtze River Delta Region to build red tourism (linked with
5 Chinese Communism)
6 Legislate to build Shanghai into ‘International Exhibition Capital’
• ‘The Regulation of Shanghai Exhibition Industry’ adopted on Mar 19,
• Full protection of 440 well-restored sites in Shanghai.
• Promote red tourism to young students.
2020, will come into force from May 1.
• This could secure and enhance the MICE business.
• The government aims to leverage mega-events, such as CIIE 2021, to
convey a positive message.
7 Enhance supports on the cruise market

• Shanghai Baoshan government will finance and incentivize cruise and its
related corporates to gather corporates of the cruise industry.
27
Source: Shanghai Municipal

COVID-19 infections that happened this summer across the Yangtze-delta region have greatly
MICE Market impacted the Shanghai hotel market. Updated news is all exhibitions and events turn on hold.
However, we expect the virus outbreak in China is subsiding and the MICE dynamics will restart soon.
MICE sector is expected to recover to 2019 level with a total of 331 events, around 5% greater than that of 2018 and 2019. A backlog of
MICE demand is unlocked.
2015 – 2020 Shanghai international and domestic exhibition areas 2018 – 2020 China International Import Expo (CIIE)
2,500 80.0% 2018 2019 2020 2019 vs.2020 (%)
Total Exhibition Area (m2)
No. of nations, regions, organizations 172 181 / /

2,000
Proportion (%)
75.0% No. of oversea companies 3,617 3,800 / /
1,500
Total Exhibition Area (thousand sqm) 300 360 390 8.3%
X10,000
1,000 Cumulative intentional deals in one year

70.0% 57.8 71.1 72.6 2.1%
500 (billion USD)
Popular products & fields at the
0 65.0% 2020 CIIE
2015 2016 2017 2018 2019 2020
International Exhibiton Area (m²)
Health & Hygiene Medical Instruments HealthCare
Domsetic Exhibiton Area (m²)
Proportion of International Exhibition Area
• Due to the COVID-19, the domestic and international exhibition area in 2020 declined
46.8% and 41.8% than those in 2019 respectively. Notably, the proportion of international
2018-2021 The number of exhibitions in the three Expo Centers exhibition area has increased to 78.9%, 1.5 pp. more than 2019.
250 • Shanghai has held CIIE for three consecutive years with large successes. Despite the
Number of exhibitions
Real growth of 23% impact from COVID-19, the total exhibition area of the 3rd CIIE has increased 8.3% y-o-y
200
than one in 2019. Besides, Cumulative intentional deals have increased 2.1% than last
150 SNIEC Expo, reaching 72.6 billion US dollars. Shanghai official has announced that the 4th CIIE
NECC will be held on time from 5 Nov – 10 Nov 2021.
100
• Moving forward, a recovery in growth in the MICE market is expected. Taking Shanghai
50 SWEECC
New International Expo Centre (SNIEC) as an example, SNIEC is going to hold 203
0 exhibitions in 2021, which increases 95% and 23% y-o-y than in 2020 and 2019. As a
2018 2019 2020 2021 result, the total number of exhibitions is projected to achieve a record high of 331 events28
and exhibitions, greater than that in 2018/2019 regular years.
Source: Demage, Shanghai Statistics Bureau, The Paper News, Expo Centre Official Websites
Domestic Wedding Market
Marriage registration is returning to normalcy while the transaction volume on the wedding expo has been restored to above 90% of
the pre-COVID level. Shanghai is leading the recovery of the wedding market.
2019 vs. 2020 China Marriage Registration Transaction volume on the first day of the 2017-2019 China Wedding Revenues
Transaction volume (10 million RMB)

Wedding Expo 2,500
1,000 Q4:Decline by 12% 2,112
Wedding Revenue (billion RMB)

Aug 25
Chinese Valentine's Day
5 1,823
2,000
800
Q3:Decline by 17% 4
Registered couples
1,462
600 3 1,500
Q2:Decline by 22% Around Mid-Autumn

Festival and 2
400 1,000
National Day
1
Q1:Decline by 45%
200 May 20
500
0
20Q1 Homophony of love Shanghai Beijing Guangzhou Hangzhou Wuhan Chengdu
COVID-19 outbreak In Chinese
0 0
2020 Winter 2019 Winter
19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 2017 2018 2019
• The number of marriage registrations has declined significantly due to the COVID-19 pandemic. However, since China controlled the pandemic effectively, especially
since May 20, the number of marriage registrations has been increasing. The y-o-y decline in each quarter has been narrowing, from 45% to 12%.
• According to the data from the China Wedding Expo, the transaction volume on the first day of the wedding expo has restored to above 90% y-o-y of the pre-COVID-19.
Taking Shanghai for example, the transaction volume of the 2020 Shanghai Winter Wedding Expo was 424 million, reaching 93.0% of the 2019 Shanghai Winter Wedding
Expo.
• Average wedding spending per marriage is around 228,000 RMB across China. According to FORWARD THE ECONOMIST, the average wedding spending per marriage in
Shanghai is 350,000 RMB.
29
Source: Ministry of Civil Affairs of the People’s Republic of China, China Wedding Expo Data Center, News
Shanghai Wedding Market
Demand for wedding is in a downward trend, but the wedding budget has been increased to 7,000-10,000 RMB per table, benefiting
the whole upscale hotel market. Wedding marketing on online platforms may help to reach a greater customer base.
2015-2020 Marriage registration in Shanghai Transaction volume of Shanghai Services offered of the Shanghai Winter
16
14.2 Wedding Expo Expo 2020
Transaction volume (10 million RMB)

14
Number of marriage registration
12.5 11%
12 10.9 10.4 6
(X 10,000/Couples)
9.9 Wedding Hotel

10 9.2 31%
4 22% Wedding service
8
Wedding photography
6
2 Wedding dress
4 Jewelry
2 0 Wedding Supplies
9%
0 2019 2019 2019 2019 2020 2020 2021 13%
2015 2016 2017 2018 2019 2020 Spring Summer Fall Winter Fall Winter Spring 14%
Channels to get wedding information • Shanghai marriage registrations declined annually at a CAGR of -6.1%. This is a
photography shooting
Pricing of wedding
universal trend in China. However, the wedding budget has been increased to 7,000-
10,000 RMB per table. Besides, the transaction volume of the Shanghai wedding expo
has recovered drastically, reaching more than 93% of pre-COVID-19 transaction volume.
94% 65% • The wedding hotel is the most popular product in the wedding expo, accounting for
Tier 1 cities Tier 2/3 cities Tier 4/5 cities 31%. Besides, the money spent on wedding photography in the first-tier cities is about
¥ 10,539 ¥ 8,893 ¥ 8,756 10,539 RMB, which is around 20% more than that in Tier 2 to 5 cities.
Online Offline • Notably, due to the COVID-19, 94% of wedding-related information or products were
30
offered by online channels in 2020.
Source: Shanghai Civil Affairs Bureau, China Wedding Expo Data Center, News, Tencent Wedding Industry Insight White Paper 2021
Hotel Market Supply
The growth pace of future pipeline paused in 2020 due to COVID-19 and many projects have been postponed. As the COVID-19
situation has eased, there will be 3,018 rooms entering the market in the rest of 2021.
2015-2023F Shanghai Hotel Market Supply (Upper-midscale above) 2015-2023F Hotel Pipelines
140,000 8,000
120,000 7,000
6,000
100,000
5,000
Rooms
Rooms
80,000
4,000
60,000 3,000
40,000 2,000
20,000 1,000
- -
2015 2016 2017 2018 2019 2020 2021F 2022F 2023F 2015 2016 2017 2018 2019 2020 YTD Jul 2021F 2022F 2023F
2021
Existing Supply Recently Added Future Supply
Recently Added Net Future Supply
• Shanghai hotel development experienced a moderate growth trend in 2019, and with the outbreak of COVID-19, many supplies have been
postponed to 2021. As at YTD July 2021, 1,912 keys have entered the market, including 60% of the upper-midscale hotels. As the COVID-19
cases are under better control, more supplies are expected to enter the market in late 2021 and 2022. Total rooms net opening 2021
1,912
• As at YTD July 2021, some notable openings include the 265-room JW Marriott Fengxian, 256-room Hyatt Regency Shanghai Songjiang,
233-room J Hotel Shanghai Tower and 244-room Hilton Shanghai Songjiang Guangfulin. Future Pipeline 2021
• When the high-end and luxury markets gradually become saturated, the mid-to-high-end market has become the main development focus of 3,018
the market. For the rest of 2021, 3,018 rooms will be entering the market. Some notable hotels include 564-room Shangri-La Hotel Qian Tan.
Some apartments will also be opening soon in 2021, such as 160-room Citadines Songjiang Shanghai. Net Future Pipeline 2022 - 2023
8,156
31
Source: STR Global, JLL Hotels and Hospitality Group

Hotel Market Supply
Projects Opening in 2022
Projects Opening in 2022 District Rooms
1 Hotel Indigo Shanghai Nanjing Road Jingan 108
Projects Opening in 2021 2 HUALUXE Shanghai Pudong Kangqiao Pudong 400
Projects Opening in 2021 District Rooms 3 Hyatt Place Shanghai Xinjiangwan Yangpu 210
1 Shangri-La Hotel Qian Tan Pudong 564 4 Hyatt Centric Zhonshan Park Changning 247
Luxury Total 564 5 Dusit Thani Shanghai Zhabei Jingan 215
Upscale Total 1,180
2 Cordis East Bund Shanghai Hongkou 200
6 Artyzen Habitat Qiantan Shanghai Pudong 246
3 Hilton Shanghai Fengxian Resort Fengxian 401
7 Artyzen Habitat Taopu Shanghai Pudong 216
4 Hilton Shanghai Xuhui Riverside Xuhui 586
8 Artyzen Lingang Shanghai Pudong 303
Upscale Total 1,187 9 Delta Hotels by Marriott Shanghai Fengxian Fengxian 320
5 Four Points by Sheraton Shanghai Jiading Jiading 240 10 Crowne Plaza Shanghai Putuo Central Putuo 450
6 Novotel Shanghai Chuansha Pudong 248 11 Caption Zhongshan Park Shanghai Puxi 258
7 Novotel Shanghai Qingpu Excellence Qingpu 260 12 aloft Shanghai Nanxiang Jiading 210
Upper Midscale Total 748 13 EVEN Hotels Shanghai Tourism Zone Pudong 350
14 AC Hotels by Marriott Shanghai Hongqiao Minhang 238
8 lyf Hongqiao Shanghai Qingpu 205
15 Holiday Inn Shanghai Jiading Xuhang Jiading 202
9 Citadines Songjiang Shanghai Songjiang 160
16 Novotel Shanghai Caohejing Xuhui 210
10 Citadines Putuo Shanghai Putuo 154
17 Novotel Shanghai Mingquan Minhang 260
Serviced Apartments 519 Upper Midscale Total 3,263
Total 3,018 18 lyf Zhangjiang Shanghai Puxi 100
19 Ascott Jing’an Shanghai Jingan 464
20 Ascott Sunland Shanghai Putuo 206
21 Citadines Changshou Road Shanghai Putuo 295
22 Somerset Luoxiu Road Shanghai Xuhui 230
Serviced Apartments 1295 32
Total 5,738
Hotel Market Supply
From 2021 to 2023, the majority of future hotel supply is positioned in the 2021F-2023F Shanghai Hotel Market Supply (By Segment)
upper-midscale segment. This segment contributes to 43% of total pipeline. Serviced Luxury
Upscale is at 26%; luxury contributes 8% and serviced apartments account for Apartments
23%
8%
23%.
Projects Opening in 2023 Upscale
Projects Opening in 2023 District Rooms 26%
1 Shanghai Hongqiao Airport Shangri-La Hotel Changning 300

Luxury Total 300
2 Hyatt Centric TODTOWN Shanghai Minhang 186 Upper Midscale
43%
3 Kimpton Shanghai New Bund Pudong 157
4 Tribute Portfolio Hotel in Shanghai, Jinshan Jinshan 65
Upscale Total 408
2021F-2023F Shanghai Hotel Market Supply (By District)
5 Four Points by Sheraton Shanghai Fengjing Jinshan 220 Changning, 5%
Others, 9%
6 Novotel Shanghai Yu Garden Huangpu 165 Fengxian, 7%
7 Fairfield Inn By Marriott Shanghai Lingang Special Area Huangpu 115 Xuhui, 11%
Jiading, 8%
8 Fairfield Inn Shanghai Hongqiao Qingpu 166
Upper Midscale Total 666
Songjiang, 4% Jingan, 5%
9 Citadines Huijin Nanxiang Shanghai Jiading 240
10 Ascott Xuhui Wanke Centre Shanghai Xuhui 170 Qingpu, 6%
Minhang, 6%
11 Somerset Tangzhen Shanghai Pudong 206
Puxi, 5%
Serviced Apartments 616
Total 1,990
Putuo, 10% 33
Pudong, 25%
Luxury Hotel Performance
The luxury market recovery showed an upward trend. As at YTD Jul 2021, RevPAR was at 910 RMB, with ADR of 1,500 RMB and
occupancy of 61%. The recovery in ADR slows the overall RevPAR recovery.
2,000 80% 1,600 30%
1,800 70% 1,400 20%
1,600
ADR/RevPAR (RMB)
60% 1,200 10%

1,400
RevPAR (RMB)
50%
Variance (%)
1,200 1,000 0%
Occ.(%)
1,000 40%
800 -10%
800 30%
600 600 -20%
20%
400 400 -30%
200 10%
- 0% 200 -40%
• In 2020, RevPAR of luxury hotels was down by 45% y-o-y to 636 RMB, due to declines in both ADR and occupancy by 10% and 28 ppts respectively. The RevPAR and ADR drops were the least significant
among all three segments (luxury, upper upscale and upscale, upper midscale). The drop in occupancy level was not the greatest, even though the hotels were cautious at managing ADR. This could
imply the major client base for the luxury hotels is not price-sensitive. However, there was weak demand from these HNWI or international VIPs due to COVID. In order to replace the loss of
international business arrivals, hotels drop rates to promote "staycation" for local shanghai residents. Despite the reported outbreaks in Shanghai in November 2019, the market recovery showed
upward trend.
• As at YTD Jul 2021, Shanghai luxury hotel market achieved a RevPAR of 910 RMB, with an ADR of 1,500 RMB and an occupancy of 60%. The current RevPAR level was 30% behind one in 2019, mainly
due to 17% and 16% decreases in occupancy and ADR. JLL notes that hotel ADR keeps fluctuating, while demand grows at a stable pace.
• From January to July in 2021, the luxury hotel market shows a strong domestic demand while the border is closed. Monthly RevPAR variance between 2019 and 2021 narrows. Hotel performance in
July 2021 even surpassed July 2019. 34

Upscale Hotel Performance
The upscale market recovery showed upward trend. As at YTD Jul 2021, RevPAR was at 542 RMB, with an ADR of 914 RMB and an
occupancy of 59%. The recovery in ADR slows the overall RevPAR recovery.
1,200 80% 900 30%
70% 800 20%
1,000
ADR/RevPAR (RMB)
60% 700 10%

800
RevPAR (RMB)
50% 600
Variance (%)
0%
Occ.(%)
600 40% 500
-10%
30% 400
400 -20%
20% 300
200 200 -30%
10%
100 -40%
- 0%
• In 2020, RevPAR of upscale hotels was down by 49% y-o-y to 371 RMB, due to declines in both ADR and occupancy by 14% and 29 ppts respectively. The drop was the most significant among all three
segments (luxury, upper upscale and upscale, upper midscale). The largest drop in RevPAR could point to the demand shrinkage, travel budget cut, fierce competition from upper segment (luxury)
and lower segment (upper-midscale). Despite the reported outbreaks in Shanghai in November 2019, the market recovery showed upward trend.
• As at YTD Jul 2021, Shanghai upscale hotel market achieved a RevPAR of 542 RMB, with an ADR of 914 RMB and an occupancy of 59%. The current RevPAR level was 28% behind one in 2019, mainly
due to 16% and 15% decreases in occupancy and ADR. Similar to the luxury hotel market, hotel ADR growth stagnates. Even the demand revived, the slow and fluctuating ADR recovery slows the
overall RevPAR recovery.
• From January to July in 2021, the upscale hotel market reveals a good signal of recovery driven by demand. Monthly RevPAR variance between 2019 and 2021 narrows. Hotel performance in July
2021 even surpassed July 2019.
35

Upper Midscale Hotel Performance
The upper -midscale market recovery showed upward trend. As at YTD Jul 2021, RevPAR was at 252 RMB, with an ADR of 439 RMB and
an occupancy of 58%. RevPAR is driven by robust ADR growth and recovering demand.
400 20%
700 80%
70% 350 10%
600
ADR/RevPAR (RMB)
60% 300
500 0%
RevPAR (RMB)
Variance (%)
50% 250
Occ.(%)
400 -10%
40% 200
300 -20%
30%
150
200 20% -30%
100
100 10%
50 -40%
- 0%
• In 2020, RevPAR of upper-midscale hotels was down by 45% y-o-y to185 RMB, due to declines in both ADR and occupancy by 21% and 20 ppts respectively. The RevPAR drop was the least significant
among all three segments (luxury, upper upscale and upscale, upper midscale), but its ADR drop was the most significant. Upper-midscale hotels filled the hotel inventory by discounting hotel rates. Its
occupancy drop was the least significant due to large discounts in ADR and a larger domestic client base. Despite the reported outbreaks in Shanghai in November 2019, the market recovery showed
upward trend.
• As at YTD Jul 2021, Shanghai upper midscale hotel market achieved a RevPAR of 252 RMB, with an ADR of 439 RMB and an occupancy of 58%. The current RevPAR level was 39% behind one in 2019,
mainly due to 18% and 26% decreases in occupancy and ADR respectively. But, from January to July 2021, the upper midscale hotel market reveals a good signal of recovery driven by demand.
Monthly RevPAR variance between 2019 and 2021 narrows. Hotel performance in July 2021 even surpassed July 2019.
36

37
IBHS Survey & Interview Highlights
Participant Overview
The total participating hotels are 59, in which the data was subdivided into 6 sub-markets for the intention to study the differences of
induced demand in the respective submarket. 12 hotel interviews are done covering all key submarkets.
Key Distribution by Submarkets Hotel Distribution by Classification
70 200%
59
02 Puxi North 60 52
Number of Hotels
（7.9%） 50 150%
Growth(%)
40
100%
30 23
18
20 50%
10 77
05 Lujiazui 0 0%
（10.1%） Luxury Upscale Total
01 Puxi Center 2021 2020 Growth
（31.8%） * Luxury hotels refer to those with ADR over 1,333 RMB in 2019 (a
04 Hongqiao median ADR of luxury and upscale hotels in 2019l) .
06 Pudong Center
（11.3%） 03 The Bund Key Distribution by Hotel Groups
（5.7%）（15.1%） Hilton
Hyatt
4%
9%
Marriott
37%
IHG
24%
07 Outskirt
（18.0%） Accor
Other
international 38
3% Domestic 16%
7%
Hotel Performance by Occupancy Level
As at 2021H1, the overall occupancy recovery is 83.5%, comparing to the pre-COVID situation in 2019. Driven by domestic leisure
demand, submarkets like Puxi Center, Hongqiao and Outskirt show strong resilience. Pudong Center's recovery is the slowest due to
strong dependence on MICE segment.
2019 – 2021H1 Occupancy Level across different submarkets
90.0%
80.0%
70.0%
60.0%
Occupancy (%)
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Puxi Center Puxi North The Bund Hongqiao Lujiazui Pudong Center Outskirt
Green means above average; red means below average. 2019 2020 2019H1 2021H1
2019 75.6% 80.4% 72.7% 64.6% 75.7% 70.7% 52.8%
2020 46.7% 43.9% 35.1% 40.0% 43.8% 43.8% 42.8%
Recovery level
61.8% 54.6% 48.3% 62.0% 57.9% 61.9% 81.2%
(Average = 61.1%)
2019H1 75.0% 76.6% 74.7% 60.9% 83.1% 77.5% 49.4%
2021H1 63.3% 61.8% 54.2% 55.6% 62.8% 55.1% 53.9%
Recovery level 39
84.4% 80.7% 72.5% 91.2% 75.6% 71.2% 109.2%
(Average = 83.5%)
Source: IBHS Surveys | Recovery level is to compare occupancy level in 2020 or 2021H1 level to 2019 or 2019H1 level.
Hotel Performance by Average Daily Rate
As at 2021H1, the overall ADR recovery is 87.2%, comparing to pre-COVID situation in 2019. ADR for hotels on the Bund and at Lujiazui
both are the highest in Shanghai. Most submarkets with higher recovery levels in ADR show lower recovery levels in occupancy,
showing stiff competition.
2019 – 2021H1 ADR across different submarkets
2,000
1,800
1,600
1,400
ADR (RMB)
1,200
1,000
800
600
400
200
0
2019 2020 2019H1 2021H1
Green means above average; red means below average.
2019 894 645 1,825 843 1,711 1,065 917
2020 699 597 1,407 689 1,520 845 729
Recovery level
78.2% 92.6% 77.1% 81.8% 88.8% 79.3% 79.6%
(Average = 82.5%)
2019H1 890 663 1,641 832 1,726 967 915
2021H1 726 629 1,475 697 1,537 836 772
Recovery level 40
81.6% 94.8% 89.9% 83.8% 89.1% 86.5% 84.4%
(Average = 87.2%)
Source: IBHS Surveys | Recovery level is to compare 2020 or 2021H1 level to 2019 or 2019H1 level.
Hotel Performance by Revenue Per Available Room
As at 2021H1, the overall RevPAR recovery is 70.6%. Submarkets with greater domestic demand are more resilient, such as Puxi North,
Hongqiao. Better performance and greater recovery for Hotels in outskirt stem from pent-up leisure demand from the local and the
surrounding areas, particularly for hotels in outskirt.
2019 – 2021H1 RevPAR across different submarkets
1,400
1,200
RevPAR (RMB)
1,000
800
600
400
200
0
2019 2020 2019H1 2021H1
Green means above average; red means below average.
2019 677 518 1,327 544 1,296 753 483
2020 327 262 494 276 666 370 312
Recovery level
48.3% 50.6% 37.2% 50.7% 51.4% 49.1% 64.6%
(Average = 50.3%)
2019H1 668 508 1,225 507 1,434 749 452
2021H1 460 388 799 387 966 461 417
Recovery level 41
68.9% 76.5% 65.2% 76.5% 67.4% 61.6% 92.1%
(Average = 70.6%)
Source: IBHS Surveys | Recovery level is to compare 2020 or 2021H1 level to 2019 or 2019H1 level.
Market Sentiment
The survey shows more than 90% stand confident in the future ADR and occupancy from corporate, MICE and leisure demand, even
most believe borders will remain shut in 2022. However, demand’s booking window may remain stable and stay as short as it is now.
Corporate Demand – Demand Outlook MICE Demand – Demand Outlook Leisure Demand – Demand Outlook
YTD 2021H1 Average Range YTD 2021H1 Average Range YTD 2021H1 Average Range
Booking Window (Days) 4.1 1-20 Booking Window (Days) 13.9 2-40 Booking Window (Days) 4.3 1-30
2022 F* 2022 F* 2022 F*
Window
Window
Window
34% 61% 42% 55% 37% 55%
Booking
Booking
Booking
2021H2 F* 21% 68% 2021H2 F* 29% 61% 2021H2 F* 26% 66%
2022 F* 50% 42% 2022 F* 65% 27% 2022 F* 68% 29%
ADR
ADR
ADR
2021H2 F* 50% 47% 2021H2 F* 54% 35% 2021H2 F* 53% 45%
Occupancy
Occupancy
Occupancy
2022 F* 66% 24% 2022 F* 71% 21% 2022 F* 46% 32%
2021H2 F* 59% 30% 2021H2 F* 68% 24% 2021H2 F* 57% 32%
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
• Hotels are optimistic about demand recovery, but • Since 2020, hotels suffer from the cancellation or • Domestic Leisure demand has led to ADR's recovery in
they are conservative on the ADR from corporate hosting restrictions (prohibited to host groups over the post pandemic era, most hotels anticipate further
demand. The booking window may remain stable. 50 pax) from MICE demand, but the greatest ADR increase in 2022.
anticipation is given to 2022 MICE occupancy. The • While most hotels stay confident, some hotels reveal
majority believes in slight increases in both either strong optimism and pessimism in 2022
occupancy and ADR for 2022. occupancy.
• The booking window may remain stable. • The booking window may remain stable. 42

Average Length of Stay (ALOS)
Due to the loss of international arrivals, average length of stay (ALOS) decreases. Moreover, as leisure guests prefer a “2 Days, 1 Night”
Staycation package instead of a hotel stay of 2-3 nights, domestic demand barely helps the ALOS. Most anticipate short-term ALOS
remains stable.
2019 – 2020 Short-term Length of Stay across different submarkets 2021 Forecasted Short-term Length of Stay
2.5 10.0%
Sharply increase
5.0%
2.0 Slightly decrease 5%
0.0% 20%
1.5 -5.0%
Days
1.0 -10.0%
-15.0% Slightly
0.5 increase
-20.0% 34%
0.0 -25.0%
Puxi Center Puxi North The Bund Hongqiao Lujiazui Pudong Outskirt
Center
2019 2020 Variance
06 Pudong
01 Puxi Center 02 Puxi North 03 The Bund 04 Hongqiao 05 Lujiazui 07 Outskirt
Center
2019 2.3 1.5 2.3 1.6 1.5 1.8 1.3 Stable
2020 2.0 1.4 1.9 1.5 1.5 1.5 1.3 41%
Variance -10.2% -6.5% -17.3% -7.0% -5.8% -19.8% 5.0%
Puxi center and the Bund area both show the highest ALOS in the Pre- & Post- COVID time, which show business and
leisure travelers prefer staying at Puxi center for convenience.
43

Undistributed Costs and Expenses
As at YTD 2021H1, the average indices of undistributed costs and expenses are aligned with the industry standards. Most hotels predict
undistributed costs and expenses may either stay stable or increase slightly.
Cost as Percentage of Total Revenue 2021H2 Forecasted Cost as Percentage of Total Revenue
Luxury Upscale 100%
2019 Average Range Average Range 10% 10% 14% 10% 7%
90%
Administration & General 8.2% 10.3% - 5.2% 11.7% 30.2% - 2.3% 80%
Sales and Marketing 6.9% 10% - 4.2% 6.7% 25.6% - 2.7% 70% 29% 33%
38% 43%
Utilities 4.0% 5.9% - 2.5% 5.8% 8.9% - 3.0% 60% 36%
Management Fees 3.4% 4.7% - 1.2% 3.3% 5.4% - 1.6% 40%
30% 45%
Luxury Upscale 33% 40%
20% 36% 26%
2020 Average Range Average Range 10%
Administration & General 10.8% 21.9% - 4.5% 18.4% 49.1% - 2.6% 0% 5% 2% 2% 2%
Sales and Marketing 7.5% 9.1% - 5.6% 6.7% 31.3% - 0.6% A&G S&M Utilities Repairs & Management
Utilities 6.0% 11.5% - 3.2% 7.9% 16.5% - 1.7% Maintenance Fees
Repairs & Maintenance 5.0% 11.1% - 2.1% 3.8% 13.3% - 0.1%
Sharply increase Slightly increase Stable Slightly decrease
Management Fees 2.7% 4.6% - 1.2% 2.5% 3.7% - 0.4%
Luxury Upscale • As at YTD 2021H1, the average indices of undistributed costs and expenses are aligned with
2021H1 Average Range Average Range the industry standards. While some hotels with greater percentages may need to investigate
Administration & General 7.5% 10.6% - 5.0% 16.3% 46.8% - 2.0% from the top-line and the bottom-line. Hotels with lower percentages may need to rethink
Sales and Marketing 6.8% 8.6% - 5.5% 6.6% 24.8% - 1.9% their S&M strategies, property maintenance and so on to enhance their competitiveness and
market visibility, and offer products aligned with the market standards.
Utilities 4.1% 4.8% - 2.9% 6.0% 10.8% - 2.3%
• Most indices are either lower than or close to ones in 2019. This shows the majority well-
Repairs & Maintenance 3.7% 6.1% - 1.8% 3.2% 7.3% - 0.3% controlled its costs and expenses.
Management Fees 3.8% 4.5% - 3.4% 3.2% 4.2% - 2% • Most hotels predict undistributed costs and expenses may either stay stable or increase
slightly.
Hotel Classification by Average Daily Rate : (in RMB)
Luxury: 2019 ADR above ≥ 1,333 || Upscale: 2019 ADR= 402 - 1,333 44

Wedding revenue
The wedding business may remain soft. Newlyweds are more inclined to host small wedding banquets with greater intimacy. But the
wedding banquet budget remains stable rather than increases.
2019 – 2021H1 Average Wedding Size 2019 – 2021H1 Average Number of Wedding per Venue
300 80

70
250
Number of attendee
60
200
50
150 40
30
100
20
50
10
0 0
Puxi Center Puxi North The Bund Hongqiao Lujiazui Pudong Outskirt Puxi Center Puxi North The Bund Hongqiao Lujiazui Pudong Outskirt
Center Center
2019 2020 YTD Jun 2019 YTD Jun 2021 2019 2020 YTD Jun 2019 YTD Jun 2021
• Most submarkets see decreases in average wedding size, except hotels in Pudong center and • Hotels in Puxi Center, Puxi North, Lujiazui and Pudong Center hosted 60-70 weddings per
outskirts. banquet hall in 2019. Those submarkets are most-populated, it’s the top choice for the local.
• Wedding size decreases, meaning fewer guests. Newlyweds are more inclined to host small • Decreases in number of weddings attribute to many factors, like fierce competition from both
wedding banquets with greater intimacy. However, the budget for the wedding banquet remains hotels and wedding venues, shrinking demand and low marriage rate, COVID restrictions in
unchanged. Newlyweds prefer to spend the excess budget on guest gifts and photography. 2020, etc.
• Survey shows that boutique weddings are held more frequently in Hotels located on the Bund • Even though there is an increase in the average number of wedding observed in 2021H1, this
with higher positioning. is mainly due to postponed weddings from 2020. Hoteliers find the wedding business remains
soft. 45

Hotel Market Supply
2016 - 2023F Hotel Supply in 01 Puxi Center 2016 - 2023F Hotel Supply in 02 Puxi North
45,000 9,000
40,000 8,000
35,000
7,000
30,000
6,000
No. of rooms
No. of rooms
25,000
5,000
20,000
4,000
15,000
10,000 3,000
5,000 2,000
- 1,000
(5,000) -
2016 2017 2018 2019 2020 2021F 2022F 2023F 2016 2017 2018 2019 2020 2021F 2022F 2023F
New Supply - - - - (987) 586 2,108 964 New Supply - - - - - 364 875 -
Recently added 675 1,367 1,021 152 248 - - - Recently added 162 172 517 233 - - - -
Existing Supply 36,138 36,813 38,180 39,201 39,353 38,614 39,200 41,308 Existing Supply 6,067 6,229 6,401 6,918 7,151 7,151 7,515 8,390
* Including upper midscale and the above * Including upper midscale and the above
** Supply removed: Seagull Hotel Shanghai(125 keys), Four Seasons Puxi (420 keys)and Guoman Hotel Shanghai (442 keys)
Notable Openings No. of rooms Expected Year of Opening Notable Openings No. of rooms Expected Year of Opening
Hilton Shanghai Xuhui Riverside 586 2021 Hyatt Place Shanghai Xinjiangwan 210 2021
Hotel Indigo Shanghai Nanjing Road 108 2022 Dusit Thani Shanghai Zhabei 215 2022
Ascott Jing’an Shanghai 464 2022 Crowne Plaza Shanghai Putuo Central 450 2022
Caption Zhongshan Park Shanghai 258 2022
Hyatt Centric Zhongshan Park 247 2022 46
Source: JLL Hotels and Hospitality Group

Hotel Market Supply
2016 - 2023F Hotel Supply in 05 Pudong Center 2016 - 2023F Hotel Supply in 06 Hongqiao
15,000 18,000
14,500 16,000
14,000 14,000
13,500 12,000
No. of rooms
No. of rooms
13,000 10,000
12,500 8,000
12,000 6,000
11,500 4,000
11,000 2,000
10,500 -
2016 2017 2018 2019 2020 2021F 2022F 2023F 2016 2017 2018 2019 2020 2021F 2022F 2023F
New Supply - - - - - 564 346 341 New Supply - - - - - 205 238 466
Recently added 118 300 - 706 - - - - Recently added 1,352 1,983 2,081 741 635 318 - -
Existing Supply 12,077 12,195 12,495 12,495 13,201 13,201 13,765 14,111 Existing Supply 8,355 9,707 11,690 13,771 14,512 15,147 15,670 15,908
* Including upper midscale and the above
* Including upper midscale and the above
** No new supply in Lujiazui
Notable Openings No. of rooms Expected Year of Opening Notable Openings No. of rooms Expected Year of Opening
Shangri-La Hotel Qiantan 564 2021 Iyf Hongqiao Shanghai 205 2021
Artyzen Habitat Qiantan Shanghai 246 2022 AC Hotels by Marriott Hongqiao 238 2022
lyf Zhangjiang Shanghai 100 2022 Shanghai Hongqiao Airport Shangri-La Hotel 300 2023
Kimpton Shanghai New Bund Qiantan 157 2023 Fairfield Inn Shanghai Hongqiao 166 2023
47
Source: JLL Hotels and Hospitality Group

Sample Size
• 17 Hotels
• 6,943 keys, 31.8% of the total sample.
48
Demand Mix
Transient demand remains robust, while group demand fluctuates due to its high volatility in COVID situation. Domestic leisure
transients become a replacement for the loss of international arrivals.
2019 – 2021H1 Demand Mix
100% 100%
13% 9% 10%
8% 7% Group
80% 90% 11%
2%
2%
5%
7% 2%
60% 80% 3%
21%
87% 90% 90% 22%
40% 70%
20% 60% 33%
0% 50% 28%
2019 2020 2021H1 38% Transient
40%
Transient Group Others
27%
Observations Strategies 30%
• Negotiated transient demand records a shrinkage • Hotels focus on signing new 20% 41%
of 11-12 ppt. This is mainly due to limited domestic corporate accounts 27%
international arrivals. to replace the loss of 10% 20%
• Discounted transient demand shows an increase international business
of 10% in 2021H1. arrivals. 0%
• The corporate group records a decrease of 3-4 ppt 2019 2020 2021H1
• Hotels use packages to set an
after the outbreak. Group sales are difficult to Retail Discount Negotiated
occupancy base, instead of
predict and control as the booking window is Qualified Wholesale Corporate
relying on groups.
shorter. Moreover, an abrupt outbreak may cause
immediate loss, making hoteliers difficult to react. Association/Convention Government Tour/Wholesaler
49

Submarket Performance
Hotel RevPAR in Puxi Center, as at the week ended 30 June 2021, has reached the recovery rate of 70%, on a two-year comparison
against the same period in 2019.
2019 – 2021H1 Room Performance 2019 – 2021H1 Weekday vs Weekend Occupancy
1,000 80% 100%
75% 74% 90%
900 70% 80% 79%
800 62% 80% 71%
60% 70%
ADR/RevPAR (RMB)
ADR/RevPAR (RMB)
700 70% 64%
Occupancy (%)
61%
600 50% 60%
651.6 44% 642.6
500 40% 50% 47%
44%
400 447.8 30% 40%
300 30%
305.2 20%
200 20%
100 10%
866.7 689.6 862.6 717.8 10%
0 0%
0%
2019 2020 2019H1 2021H1
2019 2020 2019H1 2021H1
ADR (RMB) RevPAR (RMB) Occupancy (%)
Weekday Occupancy (%) Weekend Occupancy (%)
Variance 2020 vs 2019 2021H1 vs 2019H1
Variance 2020 vs 2019 2021H1 vs 2019H1
Occupancy -41.1% -16.2%
Weekday Occupancy -40.8% -19.4%
ADR -20.4% -16.8%
Weekend Occupancy -37.7% -12.2%
RevPAR -53.2% -30.3%
• The market recovery in 2021H1 is much better than that in 2020. The hotels in Puxi center have • Puxi Center has a mix of business, leisure and MICE demand.
recovered to 70% of that in 2019H1. However, due to the loss of international arrivals, ADR • Weekday occupancy is higher than weekend occupancy. Benefited from stronger leisure
slumps significantly by 16.8%. demand, Puxi Center’s weekend occupancy recovers better than the weekday one.
50

Submarket Performance in Departmental Revenue
Hotels’ efforts in F&B revenue have shown minor positive results while offsetting the loss in room revenue. However, large GOPPAR
variance implies GOP recovery is slower than the top lines due to heavy costs.
2019 – 2021H1 Hotel Performance 2019 – 2021H1 Revenue Distribution
600 545.0 539.5 100% 4% 4% 4% 4%
90%
TRevPAR / GOPPAR (RMB)
500 80% 30% 31% 30% 29%

397.2 70%
400
60%
300 267.4 50%
202.9 200.9 40%
200 30% 66% 65% 66% 67%
112.5
100 20%
38.5 10%
0 0%
2019 2020 2019H1 2021H1 2019 2020 2019H1 2021H1
TRevPAR (RMB) GOPPAR (RMB) Rooms Department (%) F&B Department (%) Minor Operated Department (%)
Variance 2020 vs 2019 2021H1 vs 2019H1

TRevPAR -50.9% -26.4% TRevPAR = Total revenue per available room
GOPPAR -81.0% -44.0% GOPRAR =Gross operating profit per available room
• TRevPAR variance of 2021H1 and 2019H1 is -26.4%, greater than RevPAR variance (-30.3%) over • 2020 total revenue sees a greater percentage of F&B revenue, while 2021H1 sees it smaller.
the same period, implicating F&B continues to boost up the revenue. This could possibly point to the restoring room revenue and gradual decreases in F&B
revenue caused by the recovered fierce restaurant competition.
• GOPRAR variance of 2021H1 and 2019H1 is -44.0%, the largest comparing to TRevPAR variance
of -26.4% and RevPAR variance of -44.0%. This implies the recovery of GOP flow-through is lower
than the revenue recovery due to the heavy cost. 51

Submarket Wedding Performance
As at YTD 2021H1, hotels host 24 weddings per venue on average. Puxi Center is the most densely populated area in Shanghai, thus
people prefer hosting weddings here. While the marriage rate continues to decline, the demand for wedding banquets is lower. At the
same time, the strong competition from catering and wedding venues also makes it difficult for the hotel's wedding to generate greater
income.
Variance Variance
150 148 -2.4% 60 -8.1%
147 52

144 48
145 50
Number of attendees
140 40 Variance
Variance
11.7%
135 -10.2% 30
22 24
130
130 20
125 10
120 0
2019 2020 2019H1 2021H1 2019 2020 2019H1 2021H1
52

Sample Size
• 5 Hotels
53
Demand Mix
Hotels encountered short of group and tour groups. However, hotels in Puxi North have a great portion of domestic accounts, thus
corporate transient remains stable.
100% 100%
11% 16% 9%
26% 8% Group
80% 90% 14%
3%
60% 80% 15% 2%
40% 88% 83% 2%

73% 70% 31%
32%
20% 60%
35%
0% 50%
2019 2020 2021H1 Transient
40% 23%
Transient Group Others 23%
Observations Strategies 30% 15%

• Group records a decrease of 13-15 20%
ppt after the outbreak. Such drop
• Group demand may remain volatile as long 28% 26%
is much greater than that of Puxi 10% 21%
as the epidemic becomes a “NEW NORMAL”.
Center. This is because
Thus, hotels are encouraged to target
tour/wholesaler of 9% in 2019 has
transients with high spending powers by 0%
dropped to 0-1% since COVID.
designing specialized packages like “Room + 2019 2020 2021H1
• Discounted transient demand is
Dining Experience + Attractions”. Attractions Retail Discount Negotiated
captured through hotels’
can be a collaboration with museums and
packages. Qualified Wholesale Corporate
others to attract the return guests.
• Negotiated transient remains Association/Convention Government Tour/Wholesaler 54
relatively stable.
Hotel RevPAR in Puxi North, as at the week ended 30 June 2021, has reached the recovery rate of 75%, on a two-year comparison
100%
700 90%
90% 86%
80% 80% 82%
600 77% 80% 74%
70% 68%
ADR/RevPAR (RMB)
500 70% 61%
Occupancy (%)
62%
Occupancy (%)
518 508 60%
60%
400 50% 50%
50% 46%
44% 388
300 40% 40% 36%
262 30% 30%

200
20% 20%
100 10% 10%
645 597 663 629
0 0% 0%
2019 2020 2019H1 2021H1 2019 2020 2019H1 2021H1
ADR (RMB) RevPAR (RMB) Occupancy (%) Weekday Occupancy (%) Weekend Occupancy (%)
Variance 2020 vs 2019 2021H1 vs 2019H1

Variance 2020 vs 2019 2021H1 vs 2019H1
Occupancy -45.4% -19.3%
ADR -7.4% -5.2%
RevPAR -49.4% -23.5%
• Due to the loss of low-profit-yielding groups, its ADR decrease limits to a certain level by 5% as at • Weekend demand needs more time to recover. Hotels could explore any over-weekend
YTD 2021H1. However, its ADR difference with the Puxi Center has fallen from 200 RMB to 70 demand.
RMB. This makes it hard to compete with the ones in the city center, causing its occupancy to • Puxi North attracts more business travelers on weekdays than on weekends. Hotels in this
drop by 19.3% Its RevPAR decreased by 23.5% in 2021H1, lower than that of Puxi Center. submarket are encouraged to offer staycation and competitive F&B dining options. 55

Room Revenue may take time to fully recover to 2019 level. Thus, hotels are recommended to explore revenue from F&B outlets, like
food delivery, outlet repositioning, outlet space lease or self-operated, etc.
700 658.5
100% 2% 3% 2% 2%
600 562.2
80% 38% 39% 36%

500 441.4 42%
400 60%
328.9
300
40%
200 130.6 136.8 59% 59% 61%
55%
100 20%
NA NA
0 0%
2019 2020 2019H1 2021H1 2019 2020 2019H1 2021H1
Variance 2020 vs 2019 2021H1 vs 2019H1

GOPPAR NA NA GOPRAR =Gross operating profit per available room
• TRevPAR variance of 2021H1 and 2019H1 is -33.0%, greater than RevPAR variance (-23.5%) of the • F&B revenue for Puxi North is an important source of income accounting for 39% of total
same period. This indicates there is room for hotels to leverage more on F&B outlets, increasing income pre-covid period, it has been decreased to 36% for the same period in 2021 based
revenue from F&B outlets. on the 2-year same period comparison. This reflects its greater negative TRevPAR variance,
meaning F&B revenue fails to offset the revenue loss from rooms department.
• The GOP% submitted is not valid to automate the index.
56

As at YTD 2021H1, hotels host 18 weddings per venue on average. Same as the wedding trends, its wedding size and number both
decrease.
80
Variance
70
140 130
-8.1% Variance 70
119 Variance

120
117 -14.5% 60
-38.6%
100
Number of attendees
100 50
43
80 40
32 Variance
60 30 -44.2%
40 20 18
20 10
0 0
2019 2020 2019H1 2021H1 2019 2020 2019H1 2021H1
57

Sample Size
• 4 Hotels
58
Demand Mix
As at 2021H1, Bund hotels record the greatest portion of discounted transients. Bund Hotels continue leveraging on historical ambiance
and the view. More staycation packages are designed targeting transient with high spending power.
100% 100% 0%
5% 4%
17% 10% 12% 4% 11% Group
80% 90%
10% 4% 2%
60% 80% 6%
13% 14%
40% 82% 79% 70%
78% 16%
20% 60%
50% 35%
0% 35%
2019 2020 2021H1 Transient
40% 31%
30%
Observations Strategies
• Hotels target leisure transient with higher 20%

• The corporate group records a budgets. Rather than marketing the 29% 27%
decrease of 7-10 ppt after the 24%
standard room types, packaging featured 10%
outbreak. Bund hotels hosted some rooms with more appealing offerings could
oversea luxury groups, but this better capture the higher-paying leisure 0%
demand has terminated since demand. 2019 2020 2021H1
COVID.
• With the sharp drop from international Retail Discount Negotiated
• Bund hotels are highly dependent on
international business arrivals, so business travelers, hotels focus on Qualified Wholesale Corporate
since COVID, negotiated transients targeting domestic corporate accounts to Association/Convention Government Tour/Wholesaler
make up the loss at a competitive rate, 59
have slides from 16% to 11-12%.
setting up an occupancy base. Source: IBHS Surveys
Hotel RevPAR on the Bund, as at the week ended 30 June 2021, has reached the recovery rate of 65%, on a two-year comparison
2,000 80% 100%
1,800 73% 75% 90%
70% 79%
1,600 80% 75% 75%
60%
ADR/RevPAR (RMB)
1,400 70% 65% 63%
Occupancy (%)
Occupancy (%)
52% 50%
1,200 1,327 60%
1,225 50%
48%
1,000 40% 40% 50%
39%
800 30% 40%
873
600 30%
637 20%
400 20%
200 10% 10%
1,825 1,602 1,641 1,669
0 0% 0%
2019 2020 2019H1 2021H1 2019 2020 2019H1 2021H1
Variance 2020 vs 2019 2021H1 vs 2019H1

Variance 2020 vs 2019 2021H1 vs 2019H1
Occupancy -51.7% -27.5%
ADR -22.9% -10.1%
RevPAR -62.8% -34.8%
• Most luxury hotels are located on the Bund. Thus, the luxury hotel market is disturbed by COVID • As at YTD 2021H1, weekend occupancy performs much better than weekday one,
the most, so is the Bund submarket. In 2021H1, its RevPAR decreased by 34.8% comparing to achieving a 90% recovery from 2019H1. Such recovery is the best in Shanghai city center.
2019H1. Such drop ranks the top in Shanghai. However, its weekday occupancy recovers much more slowly due to the before-mentioned
loss of international demand.
• However, due to the loss of international arrivals, the resulted declines in corporate demand and 60
group impacted its occupancy, which decreased by 27.5% in 2021H1 comparing to 2019H1. This • Hotels on the Bund has been promoting heavily on "staycation" targeting the local who
also triggers ADR decrease. cannot travel to other regional cities.
As the services and standards are of most importance, cost reduction is not a sustainable strategy to relieve its short-term burden.
Therefore, it is suggested that hotels should strive to generate more revenue in order to reduce cash flow pressure.
2,000 100% 3% 4% 4% 4%
1,758 1,725
1,800 90%
1,600 1,466 80%

43% 46% 39% 42%
1,400 70%
1,200 60%
1,000 859 50%
738
800 40%
581
600 444 30%
53% 50% 57% 54%
400
153 20%
200
10%
0
0%
2019 2020 2019H1 2021H1
2019 2020 2019H1 2021H1
TRevPAR (RMB) GOPPAR (RMB)
Rooms Department (%) F&B Department (%) Minor Operated Department (%)
Variance 2020 vs 2019 2021H1 vs 2019H1
• TRevPAR variance of 2021H1 and 2019H1 is -74.6%, lower than RevPAR variance (-34.8%) of the • As at 2021H1, room revenue accounts for 54% while F&B revenue accounts for 42%. The
same period. The loss in room revenue was not offset by F&B revenue. revenue distribution is quite similar as the history.
• By comparing 2021H1 to 2019H1, GOPPAR variance of -80.6% is even lower than TRevPAR of -
74.6%. It indicates that luxury hotels have higher fixed costs to keep up service standards, thus it
is not only critical to manage the fixed costs but also the cash flow. 61

As at YTD 2021H1, hotels host 54 weddings per venue on average. Same as the wedding trends, its wedding size and number both
decrease.
100 20
Variance 18
90 87 18
-23.4% Variance

80 16 Variance
68 -21.1% 14
67 Variance
Number of attendees
70 14 -47.2%
60 12 -33.7%
54
10 9
50 10
40 8
30 6
20 4
10 2
0 0
2019 2020 2019H1 2021H1 2019 2020 2019H1 2021H1
62

Sample Size
• 6 Hotels
63
Demand Mix
Retail transients and groups are highly volatile by the COVID situation. Discounted transients induced by staycations are one of the ideal
markets to boost up occupancy.
100% 100%
20% 17% 8% 6% 6%
20%
80% 90% Group
10%
14%
16% 1%
60% 80%
1%
5%
40% 80% 83% 70% 25%
76% 20%
20% 60% 22%
50%
0%
2019 2020 2021H1 29% Transient
Transient Group Others 40% 18% 32%

• Hongqiao hotels have a great portion of • In 2020 and 2021H1, hotels’
discounted transients nearly 20%
groups. The corporate group records a
decrease of 4-6 ppt after the outbreak. double up from 18% in 2019 to 30% 27%
25%
Tour/wholesaler demand also decreases 32% and 29% in 2020 and 10%
slightly by 2%. 2021H1 respectively. This is a
• There are frequent travel restrictions imposed revised strategy of staycation. 0%
in 2020, making the Hongqiao transportation • Benefiting from Hongqiao’s role 2019 2020 2021H1
hub less busy than before. Thus, its retail as a transportation hub, this area Retail Discount Negotiated
transient decreased by 5% from 30% to 25%. is still much preferred by Qualified Wholesale Corporate
As the travel restrictions loosen up, its retail corporate and tour/wholesaler 64
transients increased to 27% in 2021H1. groups. Association/Convention Government Tour/Wholesaler
Hotel RevPAR in Hongqiao, as at the week ended 30 June 2021, has reached the recovery rate of 75%, on a two-year comparison
against the same period in 2019. Even ADR recovery may take time, its occupancy, especially weekend demand, is well-recovered.
900 70% 100%
800 65%
61% 60% 90%
700 56% 80%
ADR/RevPAR (RMB)
50%
Occupancy (%)
600 70%
Occupancy (%)
62% 59%
58% 54%
500 40% 40% 60% 52%
544 49%
507 50%
400 30% 41%
40%
300 387 40%
20% 30%
200 276
10% 20%
100
843 689 832 697 10%
0 0%
0%
2019 2020 2019H1 2021H1
2019 2020 2019H1 2021H1
Variance 2020 vs 2019 2021H1 vs 2019H1

Variance 2020 vs 2019 2021H1 vs 2019H1
Occupancy -51.7% -8.8%
ADR -22.9% -16.2%
Weekend Occupancy -29.6% 7.5%
RevPAR -62.8% -23.5%
• Hongqiao is more resilient in demand, recording only one-digit decline in occupancy, while the • The demand for weekdays and weekends is closely well-recovered. Hongqiao hotels did a
overall market records a two-digit drop. Its drop in ADR is quite close to one in Puxi Center. This good job in promoting weekend packages to the local thus weekday occupancy at 2021H1
could also explain the resilience in occupancy. achieved a 92% recovery, and its weekend occupancy even grew by 7.5% comparing to
2019H1. 65

Room Revenue, especially ADR index, may take time to fully recover to 2019 level. Thus, Hotels are recommended to explore revenue
from F&B outlets.
1,000 917.9
882.0 100% 4% 4% 2% 4%
900 90%
800 80%
669.8 37% 39% 39% 34%
700 70%
600 60%
489.0
500 50%
400 40%
276.4 248.0
300 30% 59% 57% 58% 62%
200 163.5 20%
100 67.1 10%
0 0%
2019 2020 2019H1 2021H1 2019 2020 2019H1 2021H1
Variance 2020 vs 2019 2021H1 vs 2019H1
• TRevPAR variance of 2021H1 and 2019H1 is -24.1%, close to RevPAR variance (-23.5%) of the • In 2020, F&B revenue percentage records a 2% increase from 2019. However, as of
same period. This shows the loss in room revenue was almost offset by F&B revenue. Thus, 2021H1, its F&B revenue only accounts for 34%, lower than one in 2019FY. Hotels are
hotels are highly recommended to continue its efforts in F&B sales and marketing. recommended to strengthen their F&B efforts to supplement their loss in room revenue.
• By comparing 2021H1 to 2019H1, GOPPAR variance of -34.1% is much greater than TRevPAR of -
24.1%. This shows the inflow of top lines is yet enough to create economies of scale. 66

Due to limited outdoor space and long distance from the populated city center, hotels in Hongqiao are not the top choice for wedding
venue among the locals. The market is mainly driven by MICE and regional business travelers. As at YTD 2021H1, hotels host 8
weddings per venue on average. Same as the general trends, its wedding size and number both decrease.
Variance
-0.5% Variance
160 30
143 142 Variance
-12.9%
140 Variance

128 24 -34.7%
25
120 111 -28.1%
Number of attendees
20
100
16
80 15
11
60
10 8
40
5
20
0 0
2019 2020 2019H1 2021H1 2019 2020 2019H1 2021H1
67

Sample Size
• 5 Hotels
68
Demand Mix
As at 2021H1, Lujiazui hotels greatly leverage their strategic location and bund view to design appealing staycation packages, thus retail
and discounted transient demand show increments in the post-COVID period.
100% 100% 2% 2%
3%
18% 13% 90% 13% 10% Group
80% 15% 15%
3%
60% 80% 2% 2%
5% 1%
2%
40% 77% 77% 70%
71% 17% 22%
20% 60% 26%
0% 50%
2019 2020 2021H1
25% Transient
40% 24%
21%
20%
• Similar to hotels on the bund, lujiazui’s 25%
• Group demand records decreases of 3- 23%
25%
bund-view rooms are the best sellers for 10%
5 ppt after the outbreak, majorly due
leisure transient. This is a competitive
to the decline in corporate group.
advantage for hotels to package their
• Discounted transient also dropped by 0%
staycation program, helping the hotels to
4-9%, whereas its retail and discount 2019 2020 2021H1
gain more retail and discounted
transient portion climbed a bit. Retail Discount Negotiated
transients.
Qualified Wholesale Corporate
69
Association/Convention Government Tour/Wholesaler
Hotel RevPAR in Lujiazui, as at 2021H1, has reached the recovery rate of 70%, on a two-year comparison against the same period in
2019. Both ADR and occupancy still need time to recover. Hotels may brainstorm competing packages to attract repeating leisure
transient. 2019 – 2021H1 Room Performance 2019 – 2021H1 Weekday vs Weekend Occupancy
2,000 90% 100%
1,800 83% 80% 90% 84%
76% 76% 79%
1,600 70% 80% 74%
ADR/RevPAR (RMB)
1,400 63% 70% 64% 65%
Occupancy (%)
Occupancy (%)
1,434 60%
1,200 1,296 60%
50%
1,000 44% 50% 44% 45%
40%
800 966 40%
600 30% 30%
666 20%
400 20%
200 10% 10%
1,711 1,520 1,726 1,537
0 0% 0%
2019 2020 2019H1 2021H1 2019 2020 2019H1 2021H1
Variance 2020 vs 2019 2021H1 vs 2019H1

Variance 2020 vs 2019 2021H1 vs 2019H1
Occupancy -42.1% -24.4%
ADR -11.2% -10.9%
RevPAR -48.6% -32.6%
• Lujiazui records one of the greatest occupancy slumps for 2021H1 comparing to the same period • Weekend demand is relatively weak in Lujiazui. However, hotels in Lujiazui have continued
in 2019. It is not only because of the border closure, but also its effort to maintain its high ADR. to capture leisure demand since the COVID-19 outbreak, turning its weekend occupancy
Its decrease in ADR is around 11%, similar to Bund submarket. higher than the weekday one. Even so, the weekend occupancy is still lower than the one
before the epidemic. 70
• Its RevPAR dropped by 32.6% as at 2021H1, comparing to 2019H1.
Lujiazui is the only submarket in Shanghai city center, seeing the success of F&B revenue generation. As room Revenue may take time
to fully recover to 2019 level, hotels are recommended to continue driving their revenue from F&B outlets.
2,000 1873.8 100% 3% 4% 3% 3%
1,800 1692.2 90%
1,600 1430.5 80%

1,400 45% 49% 45% 47%
1168.5 70%
1,200
60%
1,000
743.9 775.5 50%
800
530.1 40%
600
363.2 30%
400 52% 52% 50%
47%
200 20%
0 10%
2019 2020 2019H1 2021H1 0%
2019 2020 2019H1 2021H1
Variance 2020 vs 2019 2021H1 vs 2019H1 Rooms Department (%) F&B Department (%) Minor Operated Department (%)

• The variance of total Revenue per available room is the smallest in Shanghai city center. Lujiazui • Lujiazui is one of the submarkets with a greater portion of F&B revenue. In 2020, hotels
achieved -15.5% for 2021H1 vs 2019H1, which is greater than RevPAR variance of 32.6% over the made more revenue in F&B, helping the TRevPAR index be greater than RevPAR. While the
same period This strongly demonstrates hotels’ efforts in driving F&B revenue. accommodation demand slowly recovers, its F&B revenue percentage decreases a bit. It is
suggested the hotels further provide creative F&B offerings to maximize their F&B
• GOPRAR variance of 2021H1 and 2019H1 is -31.6%, greater than TRevPAR variance. This implies
revenue.
the recovery of GOP flow-through is lower than the revenue recovery due to the heavy cost. 71

As at YTD 2021H1, hotels host 37 weddings per venue on average. Even though the number increases, but the wedding size decreases.
The increase was mainly attributed to the canceled or postponed weddings from 2020.
190 Variance Variance
-4.3% 185 5.1%
185 183 Variance
-11.0% 70 65
180 62

Number of attendees
175 60 Variance
175
50 11.5%
170 37
40 34
164
165
30
160 20
155 10
150 0
2019 2020 2019H1 2021H1 2019 2020 2019H1 2021H1
72

Sample Size
• 8 Hotels
73
Demand Mix
Pudong Center is greatly impacted by the volatile MICE demand from SNEIC since 2020. Hotels need to capture more domestic and
leisure demand to offset their group loss.
100%
100% 7% 6% 6%
15% 90%
80% 23% 17%
16% 16% Group
60% 80% 21%
7% 7%
40% 78% 70%
70% 71%
10%
20% 60% 23%
24%
0%
50%
2019 2020 2021H1 23%
Transient Group Others 40% 24% Transient
21%
• Hotels in Pudong are highly 20%

impacted by the exhibition
• Hotels shift their strategies from MICE 29% 23%
cancellation at SNEIC. Occupancy 10% 21%
demand to more local transient corporate
and ADR are volatile by the virus
accounts. In post-COVID time, hotels may
occurrence. So do the participants.
need to compete with hotels that are not 0%
Thus, group demand records
originally in the same comp set group for 2019 2020 2021H1
decreases of 6-8 ppt after the
the same group of clientele. Retail Discount Negotiated
outbreak, majorly due to the decline
in corporate group. Qualified Wholesale Corporate
74
Association/Convention Government Tour/Wholesaler
Hotel RevPAR in Pudong Center, as at 2021H1, has reached the recovery rate of 60%, on a two-year comparison against 2019H1.
Occupancy depends on the normality of MICE demand and the inflow of international tourists. ADR will then recover while demand
boosts up. 2019 – 2021H1 Room Performance 2019 – 2021H1 Weekday vs Weekend Occupancy
1,200 90% 100%
80% 90% 81%
1,000 77%
71% 70% 80% 73%
ADR/RevPAR (RMB)
70% 64% 65%
Occupancy (%)
800 60%
Occupancy (%)
61%
55% 60%
753 749 50% 53%
600 44% 50% 46%
40% 41%
400 30% 40%
461
370 30%
20%
200 20%
10%
1,065 845 967 836 10%
0 0%
0%
2019 2020 2019H1 2021H1
2019 2020 2019H1 2021H1
Variance 2020 vs 2019 2021H1 vs 2019H1
Variance 2020 vs 2019 2021H1 vs 2019H1
Occupancy -38.1% -28.8%
ADR -20.7% -13.5%
RevPAR -50.9% -38.4%
• Pudong Center records one of the greatest RevPAR slumps for 2021H1 comparing to the same • In 2019, Pudong Center was much busier on weekdays with huge demand from SNIEC and
period in 2019. Lack of sufficient demand induces an occupancy drop of 28.8%, following by an the surrounding companies. This supports hotels’ normal operation and development.
ADR drop of 13.5%. Its RevPAR dropped by 38.4% as at 2021H1, comparing to 2019H1. However, the occupancy on weekdays and weekends has decreased since COVID, bringing
greater pressure to the hotels in the submarket. 75

Hotels are recommended to explore revenue from F&B outlets, like food delivery, outlet repositioning, outlet space lease or self-
operated, etc.
700 100% 3% 3% 3% 3%
600 578.6 90%
80% 36% 35% 33% 34%

500
408.9 70%
400
60%
283.0 279.4
300 50%
210.1
200 173.5 40%
81.5 30% 61% 62% 63% 63%
100 54.9
20%
0
2019 2020 2019H1 2021H1 10%
TRevPAR (RMB) GOPPAR (RMB) 0%

2019 2020 2019H1 2021H1
• TRevPAR variance of 2021H1 and 2019H1 is -31.7%, greater than RevPAR variance (-38.4%) of the • Pudong Center’s revenue mix remains consistent in the pre- and the post-COVID time.
same period. Hotels try to make more revenue in F&B to offset the loss in room revenue.
• GOPRAR variance of 2021H1 and 2019H1 is -53.1%, greater than TRevPAR variance. This implies
the recovery of GOP flow-through is lower than the revenue recovery due to the heavy cost.
76

As at YTD 2021H1, hotels host 32 weddings per venue on average. Pudong Center is the only market seeing both increases in number
of wedding and its size. Some hotels create special wedding venues and offerings to compete with hotels in other submarkets.
Variance 80
Variance
Variance
38.7% 69
-13.8%
-9.0% 70
200 187

179 59
180 170 60
160 Variance
Number of attendees
50
140 129
13.2%
120 40
32
100 29
30
80
60 20
40
10
20
0 0
2019 2020 2019H1 2021H1 2019 2020 2019H1 2021H1
77

Sample Size
• 14 Hotels
78
Demand Mix
Hotels in outskirt, particularly those in traditional resort places, like Chongming, Songjiang and Qingpu, benefit from the pent-up
leisure demand.
100% 100%
6% 5% 5%
80% 27% 28% 6% 7%
90%
39% 9%
60% Group
80%
24% 22%
40% 70%
70% 69% 27%
55% 5% 8%
20% 60% 8% 6%
0% 3%
50% 5%
2019 2020 2021H1 16% 16%
Transient Group Others 40% 17%
Transient
26%
• Outskirt hotels record the greatest • Outskirt hotels record significant increases
portion of groups comparing to 20% 18%
in retail and discounted transients,
other submarkets. However, groups benefiting from pent-up vacation demand
record a decrease of 10 ppt after the from the local and nearby provinces. 10% 20%
outbreak. Such drop is mainly from 11% 15%
corporate group and • Weekend destination hotels combine 0%
association/convention group. But ambiance similar to Shanghai CBD nightlife
2019 2020 2021H1
leisure demand turns strong in the and some local flavors to induce in-house
Retail Discount Negotiated
post-COVID time, as the Shanghai guest spending such as local flavor
local is a great demand generator cocktails, live band, farm to kitchen table Qualified Wholesale Corporate
79
with a high budget. menu. (农家乐+ 酒吧+ 现场乐队) Association/Convention Government Tour/Wholesaler
Hotel RevPAR in outskirts, as at the week ended 30 June 2021, has reached the recovery rate of 90%, on a two-year comparison against
the same period in 2019. Some even over-performed in 2020 and 2021H1 comparing to 2019.
1,000 60% 100%
900 53% 54% 90%
800 49% 50%
80%
ADR/RevPAR (RMB)
700 43% 70%
Occupancy (%)
40%
Occupancy (%)
61% 59%
600 60% 55% 54%
51% 50%
500 30% 46%
50% 42%
400 483 452
417 20% 40%
300
312 30%
200 10% 20%
100 917 729 915 772 10%
0 0%
2019 2020 2019H1 2021H1 0%
2019 2020 2019H1 2021H1
Variance 2020 vs 2019 2021H1 vs 2019H1
Variance 2020 vs 2019 2021H1 vs 2019H1
Occupancy -18.8% 9.2%
Weekday Occupancy -16.8% 7.0%
ADR -20.4% -15.6%
Weekend Occupancy -23.5% 8.1%
RevPAR -35.4% -7.9%
• As at YTD 2021H1, occupancy increased by 9.2% comparing to the same period in 2019. This is • Hotels in outskirts have busier time on weekends than on weekdays. However, some hotels
the only market that records positive growth in occupancy. However, the overall ADR decreased observe the leisure demand in 2021H1 was a bit weaker than one back in 2020 due to
by -15.6%, making RevPAR decrease by 7.9%. various factors. For instance, people no longer have holidays.
80

As the services and standards are of most importance, cost reduction is not a sustainable strategy to relieve its short-term burden.
Therefore, it is suggested that hotels should strive to generate more revenue in order to reduce their cash flow pressure.
600
537.7 100% 3%
3% 4% 4%
500 90%
458.0
429.1
80% 37% 36%
400 42% 47%
70%
300 250.9 60%
50%
200 143.8
103.0 116.0 40%
100 68.7 30% 60%
55% 59%
51%
20%
0
2019 2020 2019H1 2021H1 10%
0%
2019 2020 2019H1 2021H1
TRevPAR 71.0% 17.4% TRevPAR = Total revenue per available room
GOPPAR 49.8% 23.9% GOPRAR =Gross operating profit per available room
• TRevPAR variance of 2021H1 and 2019H1 is 17.4%, greater than RevPAR variance (-7.9%) of the • Hotels had a greater portion of F&B revenue because their induced F&B revenue from
same period. Furthermore, GOPPAR variance of 23.9% is even greater than TRevPAR of 17.4%. groups. Now, it’s mainly the transient (inhouse guests) and sometimes external guests
This is the only showing positive growths in both TRevPAR and GOPPAR. who dine at the hotels’ restaurants.
81

As at YTD 2021H1, hotels host 18 weddings per venue on average. Hotels in outskirts are not the preferred wedding venue for the local,
as even both indices increase, its comparison base is much smaller than other submarkets.
Variance
Variance Variance
39.8%
300 14.2% 30 2.6%
261 26
249 25 Variance

250 25
218 4.2%
Number of attendees
200 187 20
17 18
150 15
100 10
50 5
0 0
2019 2020 2019H1 2021H1 2019 2020 2019H1 2021H1
82

83
Office Market | Overview
Map
Grade A Vacancy
Puxi CBD Pudong CBD

CBD
Rent ¥9.2/sqm/d Rent ¥8.8/sqm/d
Decentralised
Vacancy 9.5% Vacancy 12.6%
Grade A Average Effective Rents (RMB psm pd)
CBD
Decentralised
Decentralised
Rent ¥5.8/sqm/d
Vacancy 26.5%
Property Clock
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*
Quick stats
Market 2Q21 Q-o-Q Y-o-Y
Total Stock CBD 7,373,148 0 139,339
(sqm) GFA Decentralised 7,373,676 207,097 892,285 Growth Rents
CBD 9.0 0.3% -3.5% Slowing Falling
Net Effective Rents Shanghai
(RMB/sqm/day) GFA Decentralised 5.8 0.7% -3.0% Rents Decline Tenant favorable market
Rising Slowing Neutral market
CBD 11.0% -1.4pp 0.1pp
Vacancy Rate Landlord favorable market 84
Decentralised 26.5% -2.7pp -4.7pp
Source: JLL Research
Office Market | Supply & Demand
Active demand driven by consolidation and expansion requirements; vacancy continued to drop.
Total Grade A Supply & Demand (‘000 sqm GFA) New Supply in 2021Q2
New Supply
Net Absorption
Lifestyle International Center
• Overall absorption reached 450,000 sqm in 2Q21, with CBD new absorption
rising to 103,000 sqm.
• Domestic companies remained active, with domestic financial services
and professional services companies driving demand in Pudong,
especially in Lujiazui.
• Core areas in Puxi stayed resilient, with demand led by a range of
sectors. Net absorption in the decentralized market reached 347,000
sqm.
• Demand in submarkets that recently received high levels of attention
remained active.
• Mid-market industries such as TMT and manufacturing & trading firms
accounted for a large share of leasing for consolidation and expansion.
• With no new supply in the CBD area, vacancy continued to drop.
• Puxi's vacancy fell 1.5 ppts q-o-q to 11.0%.
• In Pudong, demand from domestic financial companies helped vacancy
decreased to 12.6%.
• Despite the new supply of 2 new projects (207,000 sqm), decentralized
vacancy still fell 2.7 ppts q-o-q to 26.5%, benefiting from strong leasing in SK Tower 85
submarkets such as Qiantan and Xuhui Bund.
Office Market | Performance
Leasing demand diverged further among different submarkets; Rent stabilized and some submarkets saw rental improvement.
Submarket Stock and Vacancy Submarket Rent
Note: Bar height shows submarket stock level while percentage shows submarket vacancy rate
86

Office Market | Market Trends
Demand continued to recover, achieved the Strong leasing momentum from domestic
Shanghai’s positioning as a financial hub stimulates the sector
highest quarter in the past five years. companies.
Notes: QA means quarterly average
Notes: AUM is the total asset under management through equity and balanced mutual funds
Sources: Reuters, Asset Management Association of China
• Equity investment restrictions scrapped for insurance funds and

allowed to invest up to 45% of total assets (July 16th )
• As of 2Q21, 36 domestic banks had applied for Bank Wealth
Management Subsidiaries Permits, and 26 banks were approved, out
of which 20 already opened for business*
• Special government bond issued, and increased local government
bond issuance amount to support the economy (2020)
87
Source: JLL Research Notes: analysis is based on the lease area by industries
Office Market | Market Trends
Demand growth drives TMT industry Government efforts and city consumption Healthcare consumption is likely to continue growing with rising prominence
clustering power reinforce retailers’ confidence after the pandemic Healthcare
Share of TMT industries in Shanghai
Grade A office tenant mix
(by occupied area)
Heatmap of Shanghai TMT companies

Leasing Activity Headquarter requirements continue to rise in overall market
(by leasing area in the past two years)
• As the government continued to boost

domestic consumption, both foreign and
domestic retailers displayed confidence in • As Shanghai plays a leading role in China’s “internal circulation” and
the long-term growth of Shanghai's “dual circulation” economic strategies, its headquarters economy is 88
consumer sector. expected to further expand
Office Market | Future Supply of Grade A Office in 2021
01 Puxi Center 02 Puxi North
EDGE Lifestyle International Project
Upper West T2/3/4
City Link
1FS
Jing’an Baohua Ctr
Shanghai Land Pingliang
The Roof project
Oriental Pearl Triumph Center Raffles City the Bund W. Tower
IM Shanghai Sino-American T&E Tower
Shanghai Bay Shanghai Bay
03 Puxi South 06 Pudong Center

Al Tower X-1 Fuyuan Plaza T1
Lumina Ph1 Embankment Square
CCTV Tower SOD Bank Project
Junkang Financial Plaza
SK Tower
The One
New Bund Centre
New Bund Oriental Plaza Ph2
89

Upper West T2/3/4
City Link
1FS
The Roof project

SK Tower
The One
New Bund Centre
90

Upper West T2/3/4
City Link
1FS
The Roof project

SK Tower
The One
New Bund Centre
91

92
Asia Pacific Benchmarking| Luxury hotel markets
China hotels’ recovery is ahead of that of Hong Kong, Tokyo, Singapore and Bangkok. Chinese domestic demand is a great contributor
to such, but the loss of international arrivals and sporadic confirmed cases curb the full recovery.
YTD 202107 vs YTD 201907 YTD 202107 vs YTD 201907

ADR Benchmarking for luxury hotel markets across Asia Pacific RevPAR Benchmarking for luxury hotel markets across Asia Pacific
900 0% 700 0%
800 -10% -10%
600
700 -20% -20%
-30% 500 -30%
600
RevPAR (USD)
Variance (%)
Variance (%)
ADR (USD)
-40% 400 -40%

500
-50% -50%
400 300
-60% -60%
300
-70% 200 -70%
200 -80% -80%
100 100
-90% -90%
0 -100% 0 -100%
Shanghai Beijing Hong Kong Tokyo Singapore Bangkok Shanghai Beijing Hong Kong Tokyo Singapore Bangkok
YTD 202107 YTD 201907 Variance YTD 202107 YTD 201907 Variance
• Shanghai and Beijing are the two markets with the lowest drops in ADR. It shows • Shanghai and Beijing are the two markets with the lowest drops in RevPAR, recording
China is the best-recovered country across the Asia Pacific. variances of -27% and -30% respectively.
• Most Hotels in Singapore are made quarantine hotels; thus, rates are restricted. Its • Other markets recorded RevPAR drops of 70%-90%.
ADR has dropped the greatest by 54% as at YTD Jul 2021, comparing to YTD Jul 2019.
• Other markets ‘ ADRs dropped by 30-40%, mainly due to the loss of international 93
arrivals.
Source: JLL Hotels & Hospitality Group
Asia Pacific Benchmarking| Upscale hotel markets
China hotels’ recovery is ahead of that of Hong Kong, Tokyo, Singapore and Bangkok. Chinese domestic demand is a great contributor
to such, but the loss of international arrivals and sporadic confirmed cases curb the full recovery.
YTD 202107 vs YTD 201907 YTD 202107 vs YTD 201907

ADR Benchmarking for upscale hotel markets across Asia Pacific RevPAR Benchmarking for upscale hotel markets across Asia Pacific
300 0% 250 0%
-10% -10%
250
-20% 200 -20%
-30% -30%
200
RevPAR (USD)
Variance (%)
Variance (%)
ADR (USD)
-40% 150 -40%

150 -50% -50%
-60% 100 -60%
100
-70% -70%
-80% 50 -80%
50
-90% -90%
0 -100% 0 -100%
Shanghai Beijing Hong Kong Tokyo Singapore Bangkok Shanghai Beijing Hong Kong Tokyo Singapore Bangkok
YTD 202107 YTD 201907 Variance YTD 202107 YTD 201907 Variance
• Shanghai and Beijing are the two markets with the lowest drops in ADR. It shows • Shanghai and Beijing are the two markets with the lowest drops in RevPAR, recording
China is the best recovered country across Asia Pacific. variances of -24% and -34% respectively.
• Most Hotels in Singapore are made quarantine hotels; thus, rates are restricted. Its • Other markets recorded RevPAR drops of 70%-90%.
ADR has dropped the greatest by 61% as at YTD Jul 2021, comparing to YTD Jul 2019.
• Except Tokyo upscale hotel market only lowered its ADR by 21%, other markets ‘ ADRs 94
dropped by 40-60%,
Source: JLL Hotels & Hospitality Group

2021 IBHS Shanghai Hotel Market Update by JLL (FINAL)

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2021 IBHS Shanghai Hotel Market Update by JLL (FINAL)

Uploaded by

Copyright:

Available Formats

IBHS 2021 Survey

Statement of Pecuniary Interest

Qualifications and Assumptions

2017 - YTD Jul 2021 Hotel Performance 2019-2021 Monthly RevPAR

60% 1,200 10%

2017 - YTD Jul 2021 Hotel Performance 2019-2021 Monthly RevPAR

60% 700 10%

Hilton Shanghai Songjiang Guangfulin

2021H1 vs 2019H1 Recovery Level across different submarkets

2022 F* 2022 F* 2022 F*

2022 F* 50% 42% 2022 F* 65% 27% 2022 F* 68% 29%

2021H2 F* 59% 30% 2021H2 F* 68% 24% 2021H2 F* 57% 32%

According to Tencent whitepaper, newlyweds prefer to host 据腾讯白皮书，新婚夫妇更喜欢举办小型婚宴，规模已经下

The wedding banquet budget remains stable, around 7,000- 婚宴预算保持稳定，每桌7,000-10,000元不等。

Number of wedding per venue

COVID-19 booster inoculation 疫苗加强针（第3剂）

Shanghai economy improves. 上海经济向好。

Trends and Outlook

Think out of the box! Enhance its 跳出惯性思维！加强产品特色和

Wedding info and hotel capability 婚礼资讯和酒店的承接能力需要

Benchmark wedding revenue 婚宴营销应注重投报率。

Reduce unnecessary costs 减少不必要的成本

Membership is a tool to free S&M 会员是个工具，使S&M团队获

High-yielding segments should be 高收益客源应优先考虑。

Shanghai Upscale Market Performance Benchmarking (2020 vs 2019)

Visitor Arrivals (million)

Y-o-Y Variance (%)

Source: Shanghai Municipal Tourism Administration

2010-2020 Domestic Visitor Arrivals 2010-2020 Total Visitor Arrivals

Visitor Arrivals (million)

Growth Rate (%)

Growth Rate (%)

Source: Shanghai Municipal Tourism Administration, Oxford Economics

1 Implement Tourism Support Plan to boost the consumption

7 Enhance supports on the cruise market

Source: Shanghai Municipal

No. of nations, regions, organizations 172 181 / /

1,000 Cumulative intentional deals in one year

Transaction volume (10 million RMB)

Wedding Revenue (billion RMB)

Q2:Decline by 22% Around Mid-Autumn

Transaction volume (10 million RMB)

9.9 Wedding Hotel

Source: STR Global, JLL Hotels and Hospitality Group

1 Shanghai Hongqiao Airport Shangri-La Hotel Changning 300

60% 1,200 10%

Source: STR Global, JLL Hotels and Hospitality Group

60% 700 10%

Source: STR Global, JLL Hotels and Hospitality Group

Source: STR Global, JLL Hotels and Hospitality Group

2022 F* 2022 F* 2022 F*

2022 F* 50% 42% 2022 F* 65% 27% 2022 F* 68% 29%

2021H2 F* 59% 30% 2021H2 F* 68% 24% 2021H2 F* 57% 32%

Source: IBHS Surveys

Source: IBHS Surveys

Source: IBHS Surveys

Number of wedding per venue

Source: IBHS Surveys

Caption Zhongshan Park Shanghai 258 2022

Hyatt Centric Zhongshan Park 247 2022 46

Source: JLL Hotels and Hospitality Group

Source: JLL Hotels and Hospitality Group

20% 60% 33%