Shangri-La Hotels and Resorts, Asia's largest luxury hotel operator, said yesterday it will open 11 hotels in China before 2006.

Next January, Shangri-La will open a new hotel in Zhongshan, the first five-star hotel in that Guangdong Province city.

In Shanghai, the second-phase of the Shangri-La Pudong will start operations in 2005, while Shangri-La West in Jing'an District is expected to open in 2006.

Another five-star hotel will be opened in Fuzhou, Fujian Province, by 2006.

The company expects the four hotels to cost a combined US$330 million.

Sunny Paw, vice president of sales and marketing (China), said the company's Chinese expansion plans will also include Beijing, Xi'an, Shenzhen, Zhengzhou, Sanya, Changzhou, and Chengdu.

Currently, 16 of Shangri-La's 40 Asian hotels are on the Chinese mainland, where the company won six management contracts last year.

With the robust economic growth, the Chinese market has proved attractive for foreign hotel managers. Marriott International Inc said earlier it would open three new hotels next year.

"The Chinese market is lucrative, as an increasing number of exhibitions and meetings are held here," said Haitong Securities analyst Zhang Luan. "That will benefit business hotels like the Shangri-La and Marriott in particular."

Elsewhere in Asia, Shangri-La Hotels and Resorts signed a management agreement with Hotel Excelsior Private Limited last month to manage a hotel in New Delhi. This hotel will open in December 2004.

The company's second property in Thailand, the Shangri-La Hotel Chiang Mai, which has 250 guest rooms, will also be put into operation in mid 2006.

(eastday.com November 7, 2003)