Italian fashion designer Giorgio Armani's luxury hotel brand is planning to develop a hotel in Russia's Caucasus region, a report said Friday.

Armani Hotels and Resorts, which opened its first development in Dubai last year, will launch another one in the Stavropol region's mineral springs resort area, together with other investors, Kommersant daily reported, citing sources in the hotel industry.

Investment in the project, which is to be unveiled at the upscale MIPIM real estate show in Cannes in March, could surpass 150 million dollars, the report said.Armani would be a welcome newcomer as the Russian government is showcasing the region to foreign investors.

The mineral springs area, which includes the towns of Pyatigorsk and Kislovodsk, sits just north of the Caucasus mountain range and its turbulent republics.