The Millennium Hotel flag will fly in China following an agreement to unveil its first hotel there, the Millennium Hongqiao Shanghai.

A management contract was signed today between Millennium & Copthorne (M&C) Hotels plc and the owner of the property, the Shanghai Workers Union. The Union also owns hotels, villas and spas amongst other investments in China.

The five-star hotel, called Millennium Hongqiao Shanghai, is located in the heart of the city's commercial and residential district in Hongqiao. This latest addition to M&C global chain is located along Yan'an West Road and is close to other international chains such as The Marriott and Sheraton Hotel. Millennium Hongqiao is also situated close to the Shanghai Exhibition and Convention Centre. With its central location, the hotel is a mere 10 minutes drive away from the city's domestic Hongqiao Airport.

Construction is in the final stages of completion and is scheduled to open in mid-2006.The Shanghai hotel project underlines M&C Hotels' strategy to put more Millennium flags out in Asia.

"Putting our M&C flag in Shanghai, one of the most dynamic cities in Asia if not the world, is really exciting," said Mr. Kwek Leng Beng, Chairman of M&C Hotels plc, who is also Executive Chairman of the Hong Leong Group Singapore.

M&C Hotels' growth in the third quarter of 2005 reflects steady growth progress. M&C signed a total of nine management contracts this year, including the Millennium Sukhumvit Bangkok.

Millennium Hongqiao is designed as a five-star international standard hotel with 12-storey, 350 spacious deluxe rooms and suites. It is designed to meet the needs of business travelers as well as served as a corporate retreat destination for multi-national companies with conference services and facilities. Millennium Hongqiao differs from other city hotels in Shanghai in that it focuses on the landscaping design – use of trees, water features, lush greeneries – to provide guests with a sense of serenity and spaciousness.

Mr Vincent Yeo, President, Asia Pacific for M&C Hotels said: "This is the first step for M&C in creating a presence in the Chinese market. We aim to continue expanding our presence in China in key gateway cities."

The historical origin of the Hongqiao site is a retreat area for senior Chinese union and political leaders, with its wide recreational space and villas. The site has been redeveloped into a hotel, Millennium Hongqiao, and there are plans to retain the current villas as part of the hotel construction, added Mr. Yeo.

He noted that Hongqiao Airport, with about 13.5 million passengers yearly and 400 international and domestic flights departing and arriving daily at the airport, is rapidly developing into a choice district for tourists and business travelers.

The London-listed M&C Hotels plc, a 53% subsidiary of City Developments Limited and part of the Hong Leong Group Singapore, operates in major gateway cities in 16 countries with a portfolio of more than 90 hotels excluding the management contracts signed this year. It is one of the world's largest hotel chains and is Singapore's largest international hotel group.