Located by Cool Docks, a new development on the South Bund District of Shanghai, the Waterhouse is a four-story, 19-room boutique hotel built into an existing Japanese Army building from the 1930s. The concept behind the renovation rests on a clear contrast between what is old and new. The original concrete building, of three floors, has been restored adding one floor over the existing structure. The structural addition on the fourth floor is made of cor-ten steel and resonates with the industrial nature of the ships which pass through the Huangpu River, thus establishing a link with local history and culture. The design of the hotel’s interior is expressed through both a blurring and inversion of the interior and exterior, as well as between the public and private realms, creating a disorienting yet refreshing spatial experience for hotel guests. The large vertical window above the reception desk and the corridor windows overlooking the dining room are some of the unexpected visual connections that not only bring an element of surprise, but also show the hotel guests the urban condition of Shanghai, characterized by the longtang, the tight fabric that defines the unique spatial character of the city.