Shanghai Hotels to Double Capacity in Preparation for World Expo Crowds

Shanghai hotel industry will gear up for a large-scale capacity expansion before 2010 with the number of beds increasing from the current 270,000 to 400,000 and that in star-rated shanghai hotels from 90,000 to 170,000, according to the Shanghai tourism committee.
Statistics compiled by the committee show that 70 million tourists at home and abroad are expected to visit Shanghai during the 2010 World Expo, creating a demand for hotels which the current industry has difficulties in satisfying. There are at present close to 3,000 hotels and inns in Shanghai, of which 362 are star-rated shanghai hotels with approximately 90,000 beds and more than 2,600 are non-star-rated inns with around 170,000 beds.

Private capital will play a bigger role in the construction of new hotels and is expected to constitute over half of the investment in the hotel industry by 2010. Industry sources reckon that the introduction of private capital helps to provide the massive funds needed for expanding shanghai hotel capacity while promoting the industry's capital diversification and overall competitiveness.

In light of the business opportunities presented by the World Expo, international shanghai hotels ranging from the Regent and Le Meridien to Super 8 are venturing into Shanghai, while industry players such as Accor, Marriott and Intercontinental which already have a presence in Shanghai are planning for massive expansion. Meanwhile, domestic budget hotels including Jinjiang Inn and Home Inn are also vying for a piece of the Shanghai market.