The Egyptian pop star made the announcement on his social media channels on Wednesday, describing the brand as having a "high level of luxury lifestyle".
While no location is mentioned, an Egyptian site is likely.
Diab tagged Emaar’s Egyptian subsidiary Emaar Misr in the post, stating the hotel will be situated within a "prestigious development" by Emaar.
The move also comes after the company’s founder, Mohamed Alabbar, uploaded a photo this month with Diab in The Dubai Mall.
Diab posted a 30-second trailer alluding to the style of Locanda.
Surprisingly, the proposed vibe doesn't gel with the sunny Mediterranean influences associated with Diab's music.
A banner of “luxury awaits” comes before vintage-style images of a chandelier, glittering dresses and a record playing on a phonograph. It implies Locanda could be a regal venue with old-world charm, as opposed to the rollicking beach club vibes Diab often channels in hit music videos such as Amaken El Sahar and El Donia Helwa.
The announcement is the next in a growing number of ventures Diab has been involved in of late.
In February, the singer signed an agreement with Anghami, allowing the platform to becoming the exclusive home of his future releases, as well as more than a dozen previous albums and popular music videos.
In 2021, Diab also launched his new eau de parfum, 34, with an advertisement shot in the UAE featuring Downtown Dubai, Dubai Marina and Abu Dhabi's Warner Bros World theme park.
Not every commercial move he's made has been successful, though.
The advertisement featured Diab driving its new C4 when he nearly runs into a woman crossing the road.
Upon driving off, Diab uses the car’s new camera feature to snap a photo of the woman, which instantly appears on his phone.
As part of the narrative, the photo is taken without the woman’s consent.
While Citroen issued a public apology, Diab has yet to comment and the advertisement remains on his Twitter account.
The controversy has failed to dent the enduring appeal of his near four-decade career.
Earlier this month, Diab played concerts to packed audiences in Abu Dhabi and Riyadh as part of Eid Al Fitr celebrations.