Shanghai's first hotel inside a 70-year-old area of shikumen-style homes is about to start construction, according to Xuhui District government.

The project, called Jianyeli, will reuse bricks and original materials in its reconstruction. The buildings, which were built during 1931 to 1938 on Jianguo Road W., form the biggest area of traditional houses remaining in Shanghai.

The 260 suites, measuring around 25,000 square meters in total, are all stone-gated houses built closely together.

Scheduled to open later this year, Jianyeli will be renovated in two parts - modern shikumen-style apartments in the east lane, with hotel rooms in the west lane.

The east lane, with 40 percent of total buildings, is expected to regain the original shikumen look of the 1930s.

The hotel in the west lane will have 80 to 100 suites. An international hotel-management company will be invited to run it.

During Jianyeli's reconstruction, about 40,000 bricks will be preserved and reused, said Shanghai Hengfu Property Co Ltd, which is in charge of the project. An old 8-story water tower will also be reconstructed. Original materials will be used in the lanes, gates, terraces and arches.

Jianyeli was home to about 1,100 families in 2003, when residents were relocated to more spacious apartments.