Shanghai Tourism Bureau removed 16 hotels from its list of starred hotels during their annual evaluation, thepaper.cn reported.
The 14 three-star hotels and 2 two-star hotels lost their qualifications due to improper facilities, poor management or business closure.
Two other four-star hotels were required to improve their management if they wanted to stay on the list.
Shanghai has 234 starred hotels, less than last year's 247 and 273 the year before, respectively. Evaluation officers said that some hotels were forced to close their doors due to fierce competition and rising costs while others shut down in order to reinvest in more lucrative sectors.