Emaar Hotels and Resorts is looking to launch a new luxury hotel project with Italian fashion designer - according to reports.

Emaar Hotels and Resorts CEO Robert Riley said, "It is a big project in a major world capital. The project value is over $500 million. The project is not signed yet, but we are working on it."

Emaar reportedly committed an investment of $1 billion in 2005 after it signed an agreement with Italian fashion designer Giorgio Armani to develop 10 luxury Armani resorts and hotels worldwide.

Reports indicated the first hotel is expected to open at Burj Dubai in late 2008 or early 2009. The second hotel will be in Milan, followed by Marrakesh and New York. The first four to five hotels will open in three years.

"We are talking with developers in key gateway cities and resort destinations. We aim to open 10 hotels in 10 years," Riley said in reports, adding the company would not slow down its developments after achieving the target. "Five years from now we will make another 10-year plan to have more hotels."

The projects reportedly are being financed through a combination of equity and debt. Emaar Hotels and Resorts (UK) LTD. is  a unit of Emaar Properties that manages and develops Armani hotels.