The Swatch Art Peace Hotel held its ground breaking ceremony yesterday and is due to open to the public by May 2010.

The Swatch Art is the south building of the historic Peace Hotel at the intersection of Nanjing Road and the Bund.

Renovations will turn the six-story south building into a place combining a retail environment with a hotel exclusively for artists who will live, work and exhibit their creations there, according to a statement from Swatch Group, the world's largest watch maker.

The renovation work will try to keep the original look of the century-old hotel, such as the colored glaze windows and wooden staircases, Shanghai Morning Post reported today.

The south building will no longer accept reservations from the public as only luxurious rooms for artists and famous people being invited by the group will be able to stay at the hotel, the newspaper said.

Artists from around the world will be invited to stay in the hotel for three to six months for free and leave their artwork behind, whether its paintings, sculptures, installations or something else.

Swatch Group will make new designs based on the artwork, the report said.

The Swatch Group's most prestigious brands including Breguet, Blancpain and Omega will have boutique shops on the ground and 1st floor of the hotel.

The roof terrace will be turned into a "Love and Peace" restaurant with only one table for two.

The north building of the hotel, which is now being renovated and is expected to open to the public by the end of next year, will be open to the public.

However once it is completed, room prices will likely rise from US$100 to between US$300 and US$400, ranking among the highest in the city, the report said.

(Shanghai Daily November 24, 2008)