It seems that Shanghai's high-end hotels are still struggling:
I just received a promotional mail from the Grand Hyatt, offering a Superior Room for a daily rate of 1,388 RMB. And they even throw in a food/beverage voucher worth 300 RMB.
A year ago, their standard room rate was 2,500-3,000 RMB.
You can call that deflation. Or you can call it desperation.