China Airlines (CAL), Taiwan's largest air carrier, has obtained the right to build a new hotel at Taoyuan International Airport, the country's main gateway. CAL plans to rebuild a 360-room, four-star hotel on the site in three years and will get an international hotel chain to manage the new hotel. If all goes smoothly, the new hotel will begin operations in 2009 to coincide with CAL's 50th anniversary. The hotel's construction is part of a build-operate-transfer (BOT) contract that was signed between CAL and the Civil Aeronautics Administration (CAA) under the Ministry of Transportation and Communications. Under the BOT contract, CAL will invest a total of US$132 million to construct an operation centre on a 47,747-square metre plot at Taoyuan International Airport, formerly known as Chiang Kai-shek International Airport, in Taoyuan County, some 40 kilometres south of Taipei. Construction of the centre will take three years and it will be in operation for 47 years before the government takes over ownership, a CAL spokesman said. CAL plans to move its corporate head office and its crew training and dispatch centre to the new complex nearby the new airport hotel. The airline said it expects to relocate operations to Taoyuan International Airport after 2009.

Marriott International will manage its third Renaissance-branded hotel in Shanghai under an agreement reached with Shanghai Yuyuan Hotel Development Company. The property will be called the Renaissance Shanghai Yuyuan Hotel and is expected to open in 2008. It will join two other Renaissance hotels in the city, the Renaissance Shanghai Pudong Hotel and the Renaissance Shanghai Yangtze Hotel, and will be the ninth Renaissance-branded hotel in China. The Renaissance Shanghai Yuyuan Hotel will be located on Henan South Road in the Huangpu district of Puxi and will be targeted to the individual corporate and leisure traveller. Nearby is Yuyuan Park, one of the main tourist attractions in Shanghai. In addition to the two Renaissance properties now in operation in Shanghai, the Marriott International portfolio is currently represented in the city by the JW Marriott Hotel Shanghai, the Shanghai Marriott Hotel Hongqiao, the Shanghai Marriott Executive Apartments and the Courtyard by Marriott Pudong.

Kingdom Hotel Investments will develop the Raffles Phang Nga Resort and Residences at an estimated cost of US$115 million. Land was recently acquired through a joint venture company, 80% owned by KHI and 20% by European Hotels Corporation. The proposed Raffles Phang Nga Resort and Residences will start operations in 2009, with 150 rooms and 25 luxury residential villas located on 240,000 square metres of prime freehold land. It is anticipated that standard rooms will contain a gross area in excess of 100 square metres per unit. The built up areas of the villas will be approximately 500 square metres per villa. The site is populated with mature palm trees and overlooks the Andaman Sea. It includes an 80,000-square-metre fresh water lake and benefits from approximately 400 metres of direct beachfront. The proposed resort is located 35 minutes drive from Phuket International Airport. Residential villas will be offered for sale during the development period on a long-term leasehold basis. KHI is targeting to invest US$12 million for an 80% ownership stake in the proposed development. KHI will seek debt financing to fund approximately 50% of the total project. The sale of the villas during the development period will contribute to the funding of the project.