SHANGHAI: An underground hotel slated to become the world's "lowest" is to be built in this city's suburbs.

The project, to be developed by the Shimao Group, has passed its environmental evaluation and is expected to be completed by the end of 2010.

The five-star hotel, which will require an investment of about 600 million yuan ($79 million), will be built in a cave by Tianma Hill, in the Sheshan national resort area. It will be part of the "Shimao New Experience", a massive real estate project.