MILAN // Giorgio Armani opened his flagship Armani hotel in Milan yesterday, a joint venture with the Dubai developer Emaar Properties, in a subdued atmosphere, as fears surrounding Italy's debt levels intensified.
The hotel, in the upmarket fashion district of Milan, is the second property under the partnership between Emaar and the Italian designer, following the launch of the hotel in the Burj Khalifa, the world's tallest building, last year.
Italy has come into focus as fears have arisen about whether the euro zone's third-biggest economy is able to handle its debt.
"It's definitely a bad time to open it, considering the economic situation," said Harjinder Singh, a hotel consultant at CB Richard Ellis, the property company. "But I'm sure they have their own commitments and timelines. It will definitely affect the occupancy. Milan being the fashion capital, it's probably a short-term issue in terms of the turmoils around that area."
The Armani Hotel Milano is similar in style to the Burj Khalifa property, but on a smaller scale. The hotel's design is based on the clean lines, minimalism and the grey and taupe colours that are the signature traits of the designer's suits.
Although a high-profile opening project for Emaar, the company's chairman Mohammed Alabbar, was unable to attend the opening of the latest hotel because of "unforseen circumstances".
"For Emaar, this opening is an important event as it is expected to strengthen its track record in project delivery," said Chiheb ben Mahmoud, the senior vice president of Jones Lang LaSalle Hotels, Middle East and Africa.
"It will be a test for the new hotel brand. It comes at a time where the world is in turmoil. [But] no other hotel opening could better represent the designer hotel trend than the Milan Armani hotel: a fashion and design icon branded hotel in the fashion quarter of the fashion stronghold."
Work started three years ago on the Milan property and it was originally scheduled to open last year. Milan is Giorgio Armani's home town.
The cost of building the hotel has not been disclosed.
The hotel and the property in Dubai are the result of Armani's tie-up with Emaar Properties in 2005, when they established Armani Hotels & Resorts.
Armani Hotels & Resorts has plans to expand the brand globally, with a resort announced for Marrakech. The company has said in the past that the aim is to open 10 Armani hotels and resorts over the next decade, in locations such as London, Shanghai and New York.
Armani has spent the past decade expanding its portfolio across a diverse range of products. The company now designs, manufactures, distributes and retails a wide range of fashion and lifestyle products including home furnishings through its Armani Casa stores, eyewear, watches, jewellery, fragrances and cosmetics. It also has a chain of cafes.
Slowing home sales caused Emaar's profit to decline 34 per cent in the third quarter to Dh406 million (US$110m) from Dh612m in the same period last year. Revenue fell 33 per cent to Dh1.8 billion in the quarter.