Roberto Cavalli branches into hotel interior design in deal with Dubai developer Damac

Above, an artist illustration of a Just Cavalli Villa designed for Dubai developer Damac. (Courtesy Damac)
Updated 01 October 2018
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Roberto Cavalli branches into hotel interior design in deal with Dubai developer Damac

  • The agreement is part of the company’s bid to expand the luxury and fashion brand into lifestyle categories and find new sources of revenue
  • Roberto Cavalli is on track to break even this year and return to a net profit in 2019

MILAN: Italian fashion house Roberto Cavalli has signed a partnership agreement with Damac Properties under which it will provide the interior design for at least five luxury hotels, starting with a first one to be built in Dubai by 2023.
The agreement, which follows a separate collaboration with Damac on Cavalli-branded villas, is part of the company’s bid to expand the luxury and fashion brand into lifestyle categories and find new sources of revenue for the Florentine label famous for its animal prints. Company officials declined to give financial details of the deal.
Roberto Cavalli is on track to break even this year and return to a net profit in 2019, Chief Executive Gian Giacomo Ferraris said at an event to announce the hotel project on Monday.
He declined to comment on market speculation that Italian private equity group Clessidra, which bought 90 percent of Roberto Cavalli in 2015, might be looking to sell, other than saying that management was focused on executing a strategy agreed with the shareholder.
“The company is making big improvements, but to remain competitive, it needs to invest,” Ferraris said, adding Clessidra was fully supporting the company’s growth.
“The important thing is to ensure that the growth happens in an organic manner and quickly.”
Clessidra’s Managing Director Manuel Catalano said earlier this month the private equity group was working well with Ferraris, who is also former head of fashion house Versace, and had no intention of exiting Roberto Cavalli in the near term.


Global oil demand under threat from cleaner fuel

Updated 14 November 2018
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Global oil demand under threat from cleaner fuel

  • Oil demand is not expected to peak before 2040, the Paris-based IEA said in its 2018 World Energy Outlook
  • The IEA’s central scenario is for demand to grow by about 1 million bpd on average every year to 2025

LONDON: Electric vehicles and more efficient fuel technology will cut transportation demand for oil by 2040 more than previously expected, but the world may still face a supply crunch without enough investment in new production, the International Energy Agency (IEA) said on Tuesday.
Oil demand is not expected to peak before 2040, the Paris-based IEA said in its 2018 World Energy Outlook. The IEA’s central scenario is for demand to grow by about 1 million barrels per day (bpd) on average every year to 2025, before settling at a steadier rate of 250,000 bpd to 2040 when it will peak at 106.3 million bpd.
“In the New Policies Scenario, demand in 2040 has been revised up by more than 1 million bpd compared with last year’s outlook, largely because of faster near-term growth and changes to fuel efficiency policies in the United States,” the agency said.
The IEA believes there will be about 300 million electric vehicles on the road by 2040, no change on its estimate a year ago. But it now expects those vehicles will cut
demand by 3.3 million bpd, up from a previous estimated loss of 2.5 million bpd in its last World Energy Outlook.
“Efficiency measures are even more important to stem oil demand growth: Improvements in the efficiency of the non-electric car fleet avoid over 9 million bpd of oil demand in 2040,” the IEA said.
Oil demand for road transport is expected to reach 44.9 million bpd by 2040, up from 41.2 million bpd in 2017, while industrial and petrochemical demand is forecast to reach 23.3 million bpd by 2040, from 17.8 million bpd in 2017.
All global oil demand growth will stem from developing economies, led by China and India, while demand in advanced economies is expected to drop by more than 400,000 bpd on average each year to 2040, the IEA said.
The IEA, which advises Western governments on energy policy, maintained its forecast for the global car fleet to nearly double by 2040 from today, growing by 80 percent to 2 billion.
On the supply side, the US, already the world’s biggest producer, will dominate output growth to 2025, with an increase of 5.2 million bpd, from current levels of about 11.6 million bpd. From that point onwards, the IEA expects US oil production to decline and the market share of the Organization of the Petroleum Exporting Countries (OPEC) to climb to 45 percent by 2040, from closer to 30 percent today.
New sources of supply will be needed whether or not demand peaks, the agency said.
“The analysis shows oil consumption growing in coming decades, due to rising petrochemicals, trucking and aviation demand. But meeting this growth in the near term means that approvals of conventional oil projects need to double from their
current low levels,” IEA director Fatih Birol said.
“Without such a pick-up in investment, US shale production, which has already been expanding at record pace, would have to add more than 10 million bpd from today to 2025, the equivalent of adding another Russia to global supply in seven years, which would be a historically unprecedented feat.”