The 7-storey South Building, designed in European Renaissance, first opened as the Palace Hotel in 1906. The first owner of the Cathay Hotel was Victor Sassoon, a Jew of British. Entering through the revolving hall gate, there is the white floor of Italian marble, and the copper-colored chandelier. In former days, Cathay Hotel was well known in Shanghai for its luxury and magnificence. It accommodated mostly distinguished guests from countries all over the world, including state men, financiers, entrepreneurs, and Chinese social celebrities, such as General Marshall, Charlie Chaplin, and Bernard Shaw. And it was in Cathay Hotel that Noel Coward completed his famous play “Private Lives”.

The Palace Hotel would be the oldest hotel in Shanghai which still exist. The building witnessed a number of historic events such as the first International Conference of Drug Crackdown, the rally to celebrate the swearing of President Dr. Sun, the ceremony of engagement between Chiang Kai-shek and Madam Song. After the founding of the People’s Republic of China in 1949, the North Building reopened in 1956, and the South Building in 1965, both operating under the name of the Peace Hotel. And after recent renovation, all the rooms and restaurants are furnished with first-class facilities to provide guests with the best comfort and convenience. The past and today, the East and west would be of perfect harmony within the Peace Hotel.

Owing to various historical reasons, most apartment buildings and housing estates along the Bund were owned by foreign businessmen. However, the Chinese governmental organs and private businessmen tried hard to have their shares. The competitions between the Chinese and foreign businessmen had been quite intense. After the World War I, as a victorious nation, China took over the former German Club in 1934 (next to Sassoon House). After pulling down the building of the German Club, the Bank of China got the right to rebuild.

The then Kuomintang’s Bank of China intended to show off by building a 34-story building, the highest one in the Far East at that time for its office use. The Voh Kee Construction Co Ltd, the first-rate construction company at that time, was contracted to start the project. When the designing and all preparations were ready for the project including the completion of the foundation that could stand a 34-story building and was about to break ground, Sassoon, the owner of the Sassoon House, nicknamed the “Crippled Sassoon ” came out and wantonly interfered. He clamored, “Here is the British concession and any house built next to my building is not allowed to be higher than the spire of the Sassoon House”. The Municipal Council of the British concession also wallowed together in the mire and refused to issue permit for the project on the pretext that the Chinese was not able to build a 34-story building. Then the Kuomintang’s Bank of China brought a lawsuit against the crippled Sassoon . However, according to treacherous Tianjin Treaty, the Chinese government had no right to make decision on any suit that was related with the British residents. It was said that this lawsuit was finally brought to London and at last the Bank of China lost the lawsuit. The building of the Bank of China was finally 30 centimetres lower than the 77-meter-high Sassoon House The reason for this false decision was that Chinese were poor in designing ability and the 34-story building would do harm to the foundations of the surrounding buildings—it was the crippled Sassoon who kicked out 18 stories away.

Peace Hotel is truly a fusion of ancient and modern, Eastern and Western. The 12-storey Peace Hotel, built in the Gothic style of the Chicago School, first opened as the Cathay Hotel in1929. The hotel’s granite exterior with its copper-sheathed roof rises 77 metres above ground level. The first owner of the Cathay Hotel was Victor Sassoon, an Iraqi Jew of British who had made a fortune trading in opium and weapons. The hotel was symbolized the most luxurious “Number One mansion in the Far East ” along the Bund for it’s the milky-yellow walls, the revolving hall gate, the white floor of Italian marble, and the copper-colored chandelier.

Cathay Hotel was well known in Shanghai for its luxury and magnificence. It accommodated mostly distinguished guests from countries all over the world, including Politicians, financiers, entrepreneurs, important Chinese officials and Social celebrities, such as General Marshall, Charlie Chaplin, Bernard Shaw. And it was in Cathay Hotel that Noel Coward completed his famous play “Private lives”.After the founding of the People’s Republic of China in 1949, the hotel reopened as Peace Hotel in 1956. And after recent renovation, all the rooms and restaurants are furnished with first-class facilities to provide guests with the best comfort and convenience.