Why are hotels in Shanghai expensive and shabby?

The cost is too high. Hotels need to invest more resources and labor costs, leading to rising prices. Market Demand and Supply Shanghai is one of the most important commercial and financial centers in China, attracting a lot of business and tourism activities. Therefore, the demand for hotels is relatively large and the supply is limited, which makes the hotel price rise. Because some hotels in Shanghai are relatively old, the renovation needs a lot of money and manpower, and the renovation cost is too high for hotels with poor management.