Tibet has started building a luxury hotel in the region's capital Lhasa to accommodate booming tourism in the region.

The Lhasa Yungao International Hotel Company started construction on the 175-room hotel on April 27. It's expected to open in late 2008.

The hotel St. Regis, Lhasa, will be managed by Starwood Hotels and Resorts Worldwide.

Han Jingshan, assistant manager of the Yungao company, said the St. Regis, Lhasa is being built according to international five-star standards, and would be the first five-star hotel in China's vast western regions including Tibet, Xinjiang and Qinghai.

Han said room prices are likely around US$400 a night.

Tibet is experiencing increasing international and domestic interest and dramatic growth in tourism after the Qinghai-Tibet Railway linking the region with the rest of China went into operation last July.

The region reported 110,000 visitors to Tibet in the first quarter of 2007, up 15.8 percent year-on-year, and is expected to receive more than three million tourists this year.

Earlier reports also suggested that a luxury tourist train is expected to make its debut this year on the Qinghai-Tibet Railway.

(Xinhua News Agency May 2, 2007)