Italian fashion house the Versace Group is set to develop its second resort on the banks of Dubai Creek in the UAE.

The AED2.8bn (£406m, 598m euro, US$766m) Palazzo Versace Dubai resort will comprise 215 suites, restaurants and a spa, as well as 204 condominiums.

The Emirates Sunland Group – a joint venture between the Sunland Group and Emirates International Holdings – will develop and manage Palazzo Versace Dubai, while the Versace Group will design the interiors, furnishings and amenities from its home collection.

Construction is scheduled to start in January 2007, with completion in 2009.

President of the Versace Group, Santo Versace, said: “The design of the Palazzo Versace will include all the trademarks of Versace style and glamour while incorporating the needs of the local environment. This hotel will provide the ultimate destination for those wanting a taste of the Versace lifestyle within a dynamic and modern environment like Dubai.”

Sunland’s joint managing director, Soheil Abedian, added: “As a result of the group’s indelible imprint in the world of fashion, the Versace name is synonymous for luxury, glamour and exceptional quality. It is an ambitious collaboration, but one which is backed by the enthusiasm and passion of two partners with a like-minded commitment to innovation and excellence.”

The first Palazzo Versace opened on the Gold Coast, Australia, in September 2000. Details: www.palazzoversace.ae