Do I need visa to stay in hotel due to long connection

Your trip qualifies for the 24h twov in Shanghai, and leaving the airport without a visa for a layover under 24 hours is at the immigration officer's discretion. Even a hotel reservation could not guarantee entry in some past cases, you can try to stretch your layover so it exceeds 24 hours, and you are able to apply for 144h twov in Shanghai and you are allowed to leave the airport then. Or you can apply for a visa beforehand.