Karl Lagerfeld label eyes branded residence expansion in UAE, globally

Pier Paolo Righi, CEO and president of Karl Lagerfeld, speaking to Arab News. AN
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DUBAI: German fashion brand Karl Lagerfeld is eyeing branded residence expansion in the UAE and globally, according to the firm’s CEO and president.

Speaking to Arab News on the sidelines of the second day of the Future Hospitality Summit taking place in Madinat Jumeirah from Sept. 30 to Oct. 2, Pier Paolo Righi explained that the firm is currently developing 51 villas in Dubai and is planning to expand further from there.

A branded residence is a luxury property that is affiliated with a well-known label, often in the hospitality, lifestyle, or luxury sectors. These properties typically offer high-end living spaces combined with the services and amenities associated with the brand, such as concierge services, fitness centers, or spa facilities.

This falls in line with Karl Lagerfeld’s goal of expanding the brand into the hospitality sector, thereby reflecting the firm’s greater vision to broaden the label’s comprehensive lifestyle experience.

It also aligns well with the UAE Tourism Strategy to boost the sector’s contribution to gross domestic product by 450 billion dirhams ($122 billion), attract investments worth 100 billion dirhams, and welcome 40 million hotel guests annually by 2031.

“We’re currently together with Taraf developing about 51 beautiful villas here in Dubai, and I think the next logical move is Ras Al-Khaimah or Abu Dhabi,” Righi said.

“So, we’re looking into opportunities in these areas as well. It’s not concrete yet, but we very much believe in the region and will develop that further,” he added.

The CEO said that the firm is also eyeing expansion of its branded residence beyond the UAE.

“We have different plans. We have plans in Malaysia. We have plans in Asia particularly. Also in Europe — plans are concrete in Lisbon in Portugal and we’re looking into other areas as well in Southeast Asia,” Righi said.

Regarding expanding a physical presence in Saudi Arabia in particular, the CEO said: “We already have a good partnership there with the Chalhoub Group; we’ve been working with them for many years. Also, we have a store in Riyadh, which we just recently refurbished. But, I see, of course, much more potential going forward and also see more store openings.”

Recognizing the brand’s history while discussing its current direction, the president emphasized that Saudi Arabia has an impressive vibrancy that the company aims to engage with, growing beyond fashion to include residential and hospitality sectors.

Righi said: “The developments in Saudi with the NEOM project and The Line are, of course, very much forward-thinking. They are visionary and also very much intriguing for us as a brand that’s always looking at what’s at the forefront, what’s out there, which was always the vision of Karl — to embrace the present and invent the future.”

The CEO highlighted that the entity does not consider itself exclusively a fashion house, underlining that designer Karl Lagerfeld was inspired by his diverse interests, including music, architecture, literature, and culture.

“For us, the most important is to bring all these areas of interest together into one, one world and that is what we’re trying to do. And, I think the most important thing here is that the dynamic works between the culture, what you find there, basically together with the brand DNA and the consumer that has always been Karl’s thinking is like: if it works for me as a designer only, it does not work,” Righi said.

“It has to work for the people that live there, that want to live there, and it has to relate back to the culture of the country and to the to the place, to the habitat – and that is what we’re bringing together,” he added. 

Righi further emphasized that luxury and fashion houses provide not only clothing but broader experiences of indulgence that can be in hospitality, entertainment, or the residential sector.

This year’s Future Hospitality Summit 2024 marked the largest edition to date, bringing together 1,500 industry leaders and featuring more than 110 distinguished speakers, facilitating engaging discussions and networking opportunities. 

The three-day event served as a platform for industry leaders to connect, share ideas, and shape the future of hospitality and tourism.