THE Queen looked in the pink as she delighted royal watchers by officially opening the £40m Oxford Castle development in glorious sunshine last Friday.

The 11th-century site was packed for the occasion, with 500 guests waiting to greet her.

The site off New Road has undergone a radical facelift, including the £20m transformation of the former Oxford Prison into the Malmaison Hotel.

The Queen smiled and waved to the crowd as she arrived at 11.45am, dressed in a pink, three-quarter length coat and matching hat with black trim.

She was then taken on a tour of the complex, which includes restaurants, an art gallery, and a heritage and education centre.

The Queen unveiled a plaque to mark the opening the culmination of years of work by joint developers Trevor Osborne and the county council.

Mr Osborne said: "The Queen's visit is a tremendous honour for us, and a celebration of eight years' work.

"I am presenting her with a photographic record of the changes here, which I hope she will enjoy. Everything is coming on stream now the restaurants are full and last night the hotel was fully booked."

Council leader Keith Mitchell added: "The Queen told me she was intrigued by the history of the site and the unusual nature of the buildings.

"We are delighted to have the royal seal of approval."

During her visit, the Queen was shown one of the Malmaison Hotel's bedrooms, which had been converted from former prison cells.

She was shown the bedroom by Michael Jenkins, who was governor of Oxford Prison from 1973 to 1978.

He said: "Three cells have been turned into a bedroom and bathroom and it's very palatial, and very different from when I was here.

"The Queen seemed very impressed I don't think she has been in a prison cell before."

Debbie Dance, of Oxford Preservation Trust, which will run the heritage centre at the site called Oxford Castle Unlocked, also showed the Queen round.

She said: "Everyone knows the history of the university, but now we are opening up the history of the city for the people of Oxford."

Oxford East MP Andrew Smith said he was delighted by the "terrific turn-out".

He said: "This project brings together the city's history with an attractive modern development."

Spectators were out in force by 9am to get a glimpse of the Queen. During her tour, she was introduced to pupils from Pegasus Primary School, Blackbird Leys, and New Marston Primary School.

She had lunch at Christ Church in St Aldate's, where she met, among others, the Dean, the Very Rev Christopher Lewis, and Dr Evan Harris, MP for Oxford West and Abingdon. The cathedral bells rang out as the Queen was driven into the Christ Church quad in a maroon Bentley a gift from the car manufacturers to mark the Golden Jubilee in 2002.

The choirboys sang grace and a short play was performed in the Queen's honour.

Earlier, the Queen was said to have been "deeply moved" when she visited a garden created in memory of her late sister, Princess Margaret.

It was the first time she had seen the special memorial at the Rothermere American Institute, in South Parks Road, Oxford.

After Princess Margaret's death in February 2002, a group of her friends decided to put the wheels in motion for a garden in her memory outside London.

Oxford was chosen because the Princess was very fond of the city and had informal links to the institute.

Students from nearby Mansfield College and the institute craned to get a glimpse of the Queen by leaning out of windows and standing in stairwells.

They cheered and clapped when she arrived before she made her entrance into the garden. The Queen took a five-minute tour of the memorial with her sister's children, Lord David Linley and Lady Sarah Chatto.

She unveiled a plaque before talking to guests and receiving flowers from Lord and Lady Rothermere's children, Theodora, nine, and Eleanor, four.

Henry Wrong, who co-ordinated the project with Princess Margaret's friends, said: "I think she was deeply moved by it.

"But she is a master of keeping herself to herself." The garden was created by hotel and clothes designer Anouska Hempel, an actress in the 1960s and 1970s. She said: "It was a pleasure doing it for all of them."

Other guests at the official opening included jazz singer Cleo Laine, the Duke of Marlborough and the Lord Lieutenant of Oxfordshire, Hugo Brunner.

The Queen was also given a tour of Oxford University Press's Oxford Dictionary of National Biography in St Giles.