Peninsula will finish constructing a hotel in Shanghai by the end of 2009.

The new hotel will involve a total investment of US$361 million, which will be co-invested in equal amounts by Peninsula Hotels and Australia SPG.

It will be located in the North Bund area of Shanghai and will have 300 rooms. Construction work will start in the last quarter of this year, and it is scheduled to open in 2009.

In addition, Peninsula Hotels is planning to set up an office in Shanghai responsible for the company's expansion in mainland China.