STEPPING into Mercedes Yao's Shanghai home is like being transported to another era. Nostalgic and cozy at the same time, Yao's eclectic medley of Shanghai antiques blends pleasantly with Oriental accents to evoke the Old World ambience and classical splendor of a Shanghainese home.

The director of sales and marketing for Mercedes-Benz Arena says that interior design has been her strongest passion since moving back to her hometown from the United States.

"One of my greatest weekend hobbies is searching out old lane houses, apartments and garden villas." Yao said between 2001 and 2007 she visited three to four old houses every weekend with a view to buying.

"The reason I prefer old houses is because I grew up in one of the lanes. There are so many beautiful childhood memories linked with these lanes and the stunning traditional architecture, colors, street life, sounds and smells."

"One example that comes immediately to mind is that during my school summer holidays I would be relaxing with the other kids in the lane and we would all be sitting on small wooden chairs eating watermelon,'' she recalled.

Yao has renovated more than 10 houses and flats, with each then sold or rented out. She chose to live with her son in this three-floor lane house tucked away on Shaanxi Road two years ago.

"This particular lane house caught my eye mainly because of the location. It's at the center of hustle and bustle but the minute we step inside, we escape into a serene world,'' she said.

Built in 1930s, the house had never been renovated before Yao bought it and was in bad shape. She set about a complete bottom to top renovation that took six months.

Yao changed the north-facing balcony into her son's bedroom, added a double layer on the walls to make them water and sound proof and created a 3.5-meter high ceiling on the top floor.

Many homeowners in old lane houses complain of having a hard time with contractors and workers - sometimes due to disputes over costs - but Yao was lucky in that regard. The biggest challenge for her came from the neighbors, she said.

"Shanghai's old lanes are like a melting pot with people from all walks of life,'' she said. "Some have three to four families sharing one house and using the same bathroom and kitchen. Some migrant workers rent lane houses because it's convenient for them to live near their workplace."

"There are also expats who are fascinated by old houses and then there are returnees like me who are totally nostalgic to the old traditional Shanghai.''

With all these people from different social and financial backgrounds living under one long lane roof, "it's easy for less fortunate residents to envy more fortunate ones," said Yao.

"Sometimes this turns into jealousy and a desire to damage. One of the neighbors was not happy about me knocking down the north-facing balcony and reported me to the city management bureau. The bureau forced me to stop work and I had to negotiate with them for almost two months before I could restart the project,'' she said.

However, with that problem now in the past, the house is a peaceful retreat for the family. With hot-red tones for the exterior and some of the interiors, the house exudes a very warm and romantic ambience.

"There is a lot of red because my fortune teller told me that year there was lack of 'fire' in my five elements. Since red represents fire, I used it in the house to make up for the fire,'' she said.

References and connections to 1930s Shanghai come mostly through materials, furniture and colors used.

"I accumulate furniture as I grow older. I inherited a few pieces from my grandparents and my parents also gave some bits to me. I mix and match Art Deco furniture and Ming and Qing styles according to my mood,'' she said.

Yao's favorite features of the house are the floor heating and the master bedroom suite with its open bathroom. The top floor housing the master bedroom suite features a European look with an Asian twist.

Obviously the lady of the house loves a little bit of self-indulgence, as her sunlight-filled open bathroom boasts a free-standing tub.

"There's nothing better after a hard, stressful day than soaking in my bath, smoking a cigar and watching a great movie,'' she said.

Who is she?

Melissa Lu is a Northern California Bay Area native and has been living in Beijing for the past five years. She is an interior decorator and stylist who owns and operates a decoration and furniture company called ELLA Home in Beijing.

What projects are you currently involved in?

I am working on a variety of different projects at the moment, including private residences for clients in Beijing. These include a penthouse apartment and a private villa. I like to surprise clients by exceeding their expectations. Many times that could involve a suggestion to use a color or material that the client at first may be averse to, or they would not have thought to try. But once they see the finished project they are ecstatic about the results, so trust is an integral part to every working relationship.

Describe your decoration style.

Of course it will be beautiful and elegant -- that's a given - but the place has to meet its function first. I like to integrate each client's particular lifestyle, habits or interests with my decoration plan.

Where are you most creative?

It's true that mood does influence my creativity, my energy for a project and also the place I'm working in.

What does your home mean to you?

Home to me is a place of comfort and respite from the hustle and bustle of our constantly changing world. Traveling is a constant in my life, for work and pleasure -- be it visiting a new destination to source materials or procuring special decorative artifacts. I have nothing against modern or minimalist style, this works great for many concepts, but if you ask me for my home, personally I would find this to be too sterile. I prefer to have a place that's filled with light and life.

What do you collect?

Since I was a child, I have loved to collect things that interest me. It always starts with things you come across that spark your imagination or appreciation, such as simply collecting beautiful shells at the beach, rocks, stamp collecting, greeting cards -- it's a long list. These beginnings also make me want to discover as much as I can about a particular item. These interests also influence my lifestyle as well.

Where would you like to go most in Shanghai?

I am not very familiar with Shanghai, but it seems something that's always close at hand is good food, whether it's a nook in an alley or an upscale restaurant. There is so much creativity and talent in the making, so it's fun to window shop and see the constant flux of local designer boutiques and concept shops that create diversity with new and old.

What will be the next big design trend?

Design is constantly evolving, but the past and present are always connected. I hope a revolutionary design trend in environmental consciousness will arise from more than just awareness to greater action and that we learn from our mistakes. I hope that we will see more technological integration and wider use of pro-environmental design innovations.

ASK THE OWNER

Q: What are the best things about living in Shanghai?

A: The convenience and energy.

Q: Describe your home in three words.

A: Hot. Hot. Hot.

Q: What's the fi rst thing you do when you get home?

A: I pat my pet, a dog named Leo.

Q: Where do you spend the most time at home?

A: In the living room.

Q: How do you unwind?

A: Smoking a cigar and drinking cognac in the living room armchair or soaking in a bubble bath in the tub after a hard day.

Q: What's the best view outside your window?

A: A neighborhood Chinese tea house which is tucked away on the second fl oor of the building across from my house.

Q: How do you scent your home?

A: All kinds of aromatherapy oils -usually ylang ylang if I'm in a romantic mood or lemongrass if I'm in a working mood.

Q: What's your favorite object at home?

A: An antique wood carved woman from an old town in Bali.

Q: Where do you source furniture in Shanghai?

A: I go to an Art Deco furniture shop on Maoming Road, close to Yan'an Road.