As been annouced in April 2008, the new IC Shanghai Puxi will start business in 2009. This is a most needed addition to the current IC Pudong, because of the location.
The new hotel will located close to the main railway station, and not too far from Hongqiao Airport. It's part of the BM Plaza. Not as previously reported on the north of the Bund. It will include service apartments as well, but not sure whether its part of IC.
Here is some pictures of the new hotel, it looks making good progress.
http://www.skyscrapercity.com/showthread.php?t=668792