Peninsula Hotels has started building its first luxury hotel in Shanghai, which is scheduled to open in 2009.

Peninsula is a management division of the Hongkong and Shanghai Hotels, Limited. As one of the most expensive hotel brands in Hong Kong, the Peninsula operates luxury hotels in Asia and North America. It has already opened a Peninsula hotel in Beijing, whose name has recently been changed from the Palace Hotel to the The Peninsula Beijing.

The Peninsula Shanghai is jointly invested in by HSH and SPG Hotel Ltd, both of which take up 50% of the total US$361 million investment. Located on the Bund, the Peninsula Shanghai will supply approximately 300 rooms. Local media reports that Peninsula has set up an office in Shanghai and is planning to assign more employees there in order to better manage the development and operations of its hotels in mainland China.

HSH was originally incorporated as the Hongkong Hotel Company, Limited in 1866 and was one of the first companies in Hong Kong to get listed on the Hong Kong stock exchange. HSH's two main businesses are in hotels and properties. Peninsula Hotels is the company's management division, which now operates seven award-winning hotels in Hong Kong, New York, Chicago, Beverly Hills, Bangkok, Beijing and Manila, respectively, and two Peninsulas are under construction and development.