Emaar Hotels To Invest $1B in Armani-Themed Chain

MILAN-Emaar Properties of Dubai will invest $1 billion over the next 10 years developing an international portfolio of Armani-branded hotels and resorts. Emaar says the first of at least seven luxury hotels and three vacation resorts will open in Dubai in 2008 and be followed by properties in Milan, London and New York.The endeavor is a joint venture with Giorgio Armani SpA. The duo signed a letter of intent in 2004 and this week executed a formal agreement. Per the agreement, Emaar will be fully responsible for real estate, construction, management and operations, with Giorgio Armani overseeing all aspects of content, design and style, including interiors and amenities. As part of the effort, Giorgio has formed Armani Hotels and Resorts and Emaar has formed Emaar Hotels and Resorts as well as a new management company that will exclusively manage the properties. The Dubai Armani Hotel is already under construction as part of Emaar Properties’ Burj Dubai development and scheduled to open in the first quarter of 2008. Emaar says the hotel will be housed in the world’s tallest residential and commercial building, which will be the centerpiece of a new 400-acre community adjacent to the Dubai Mall. The 430,000-sf hotel will have 175 guest rooms and suites as well as restaurants and a spa. Also in the building will be 160 luxury residential apartments all designed by Armani and outfitted from the Armani Casa home furnishings collection. Executives from Emaar and Armani were not immediately available Monday morning for comment. According to its website, Emaar Properties was established in 1997 as a public join stock company with the Government of Dubai holding a 30% equity stake. The globally diversified conglomerate has a market capitalization of US$20 billion and includes Dubai Bank and Amlak Finance Co., Dubai’s largest mortgage provider. Emaar Properties chairman Mohamed Ali Alabbar is also director general of the Government of Dubai’s Department of Economic Development.The Armani Group is a fashion and luxury goods concern with 4,600 direct employees, 13 factories and about 300 retail stores in 37 countries. It designs, manufactures, distributes and retails fashion and lifestyle products including apparel, accessories, eyewear, watches, jewelry, home interiors, fragrances and cosmetics under a range of brand names. “This marks the beginning of a new chapter in the Armani story,” Giorgio Armani says in a prepared statement. “In this our thirtieth anniversary year, I cannot think of a more energizing prospect than bringing my philosophy of style and design to a collection of hotels and resorts.”