Luxury brands diversify into hospitality and retail
As China’s luxury market faces a sharp slowdown, luxury brands are diversifying their portfolios to maintain brand presence, including investing in China's hospitality and real estate sectors, opening new luxury hotels and residences in first-tier cities. Slated to launch by 2017 are two hotels in Beijing and Shanghai by Italian brand Bulgari; luxury residences in Chengdu by Versace; and luxury apartments in Beijing by Armani.

Facing a slowdown in China’s luxury market, many luxury brands are diversifying their portfolios in a variety of ways. They’ve not only been opening cafes and restaurants to complement their shops in malls across China, but they’re also investing big in the hospitality and real estate industries with opulent new luxury hotels and residences in first-tier cities and beyond. In some cases, these brands have well-established hotel chains in luxe tourist destinations across Europe, but a large share of scheduled openings are concentrated in Asia as they work to cater to the flow of Chinese tourism.

Italian jewelry and accessories brand Bulgari is one of the brands most well-known for its hotels, and its resort hotel in Bali that opened in 2014 has heavily targeted the Chinese tourist market with promotional events such as the wedding of Tiny Times megastar Yang Mi. While the scene for openings has been relatively quiet since then, the year 2017 promises to see a barrage of projects for housing and tourist accommodations across China. Here are seven that, save for one, are slated to launch in Greater China in the coming year:

1. The Bulgari Hotel Beijing

Beijing’s popular embassy and shopping district in Sanlitun will be welcoming Bulgari’s fifth hotel, a 120-room complex that is part of the Genesis Beijing office tower compound, which will also feature a contemporary art museum.

2. The Bulgari Hotel Shanghai

In Shanghai, Bulgari’s luxurious, Italian-designed suites will occupy the uppermost floors of a 40-story skyscraper in Jing’an district (formerly Zhabei). The architects have promised a design that draws from the neighborhood’s history and “flourishing art scene.”

3. Palazzo Versace Macau

Macau’s casino-driven economy is taking a hit from the slowing numbers of mainland tourists who are deterred by the anti-graft campaign, but the extravagant Palazzo Versace Macau is nonetheless preparing to woo affluent travelers looking to spend their gambling days with luxurious entertainment at their fingertips. The hotel is part of an Sociedade de Jogos de Macau (SJM) casino and resort in the Cotai Strip and will include a Michelin-starred restaurant and a theater.

4. Versace Residences Chengdu

Versace announced early last year it was teaming up with Chinese company Mind Group to open high-end housing in the fast-developing capital of Sichuan Province. This is the Italian fashion house’s first luxury residences in China, following developments in Manila and Beirut. The design comprises of a mix of signature elements of Versace Home and local Sichuan inspiration.

5. Armani/Casa Residences Beijing

Beijing’s Central Business District is preparing to gain another architectural landmark with the construction of the Armani/Casa luxury apartments. The structure, designed by Chinese architect Ma Yansong, draws from elements in nature and will provide residents with balcony space filled with park-like green space. The construction is all part of a Chinese real estate development Smart Hero-Central Park Plaza, located near Chaoyang Park.

6. Armani/Casa’s L’Art Residence in Chengdu

The only one on the list scheduled to be completed this year, Giorgio Armani’s first luxury residential complex in China is located in Chengdu. Constructed via a partnership with Chinese property developer Mind Group, the 65-unit L’Art Residence boasts the brand’s signature contemporary elegance. Apartments went on sale in 2014, with the most expensive going for approximately $3 million and featuring custom-made Armani furniture.

7. Karl Lagerfeld Macau

Chanel’s designer is working with SJM to open a 270-room hotel in the heart of Macau’s Cotai neighborhood. Karl Lagerfeld’s venture, which will feature symbolic Chinese elements like the Phoenix and the peony, will be one of the three towers of the Lisboa Palace Hotel complex, which will also house Donatella Versace’s hotel.