Palazzo Versace: Massive change coming to luxury Gold Coast hotel after House of Versace meeting

The owners of the luxury Palazzo Versace have revealed the fate of the Main Beach hotel and when the famous Medusa branding will disappear from the once-luxury complex.

The owners of the luxury Palazzo Versace have revealed the famous Medusa head branding will be gone within months.

It was revealed on Monday that the House of Versace had cut ties with the hotel after deciding not to renew its branding agreement.

In a statement, they confirmed the hotel would cease operating as Palazzo Versace on July 31, a date they described as “the end of an era”.

Palazzo Versace. The House of Versace will not renew its agreement with the Gold Coast hotel. Picture: Adam Head

“After lengthy discussions, Versace has made the strategic decision to pull out of

the Australian hospitality market,” the statement read.

“The property will continue to operate as the Palazzo Versace until 31st of July 2023,

at which time the hotel will go into a transitional phase.

“It is our ambition to retain the property, with plans to undergo an extensive renovation, and possible rebrand.

“It is our aim to ensure the property will continue to operate as a leading

five-star hotel, upholding tradition by delivering world-class service and opulent

comfort for guests.

“With the exciting development in the Main Beach corridor and rejuvenation of

the precinct, we have full confidence in continued tourism resurgence on the

Gold Coast.”

‘Gutted’: Massive change coming to luxury Gold Coast hotel

The House of Versace fashion brand is walking away from its once luxury Gold Coast hotel, with its Medusa head among furnishings set to be stripped from the complex.

The international fashion power house has decided not to renew its branding agreement with Palazzo Versace hotel owner Dong Run Group, it can be revealed.

It is understood representatives of the company recently flew to the fashion house’s headquarters in Milan, Italy to discuss its future but no agreement was reached.

The deal will run out close to mid-year meaning the iconic property at The Spit near Marina Mirage will be headed for what private condo owners at the site hope will be a “refreshing” rebrand.

A source close to the talks said: “The owners have not maintained it to the standard that the House of Versace require so they chose not to renew the licence agreement”.

The owners understood the House of Versace branding agreement expired mid-year but it didn’t necessarily mean a full-scale overhaul of the property interior.

It’s understood the main chandelier, which was previously owned by Gianni Versace himself and originally came from the National Library in Milan, will stay along with some finishings.

A condo owner said they were feeling positive about any potential refresh of the “tired hotel”: “We have to maintain a positive outlook.”

Only a handful of the Versace embellishments are expected to remain – its famous chandelier and the Medusa head in the foyer.

The end of the Versace agreement will require much of the hotel – part of a $200 million spend when first build – to be remodelled to remove the company’s intellectual property.

Thousands of the medusa tiles will have to be removed, though the largest in its foyer is expected to be allowed to remain. It’s understood tens of millions was spent on marble when the property was built.

Among those mourning the loss of the branding association is Palazzo Versace founder Soheil Abedian, whose company Sunland Group built the hotel between 1998 and 2000.

“I am aware that the House of Versace did not continue with their agreement and it is sad that it will be coming to an end,” he said on Monday.

“I hope that will become much better and given the location, it warrants an international brand coming in to manage it.

Dr Santo Versace with Soheil Abedian of the Sunland Group when they shook hands on building Palazzo Versace in the late 1990s.

“I saw this development not just as a project but as the growth of our community because it was the first branded property linked with a fashion house and ultimately led to a number of other fashion businesses moving into property.”

It was built after Mr Abedian approached the fashion house in 1997.

Sunland opened Palazzo Versace in September 2000 and has hosted U2’s Bono, Beyonce and Jay Z, Baywatch icon Pamela Anderson and Snoop Dogg.

Dong Run Group acquired the 200-room luxury hotel for $68.5m in 2012, through Nanbai Australia, a company set up by the group’s chairman Jing Lin Zuo.

The purchase included several other Chinese and Australian-based shareholders.

it was revealed in October 2022 that Shakespeare Property Group had planned to buy the Palazzo Versace for $114m, however staff and condo owners of the hotel were later told the deal has been terminated.

Other luxury hotel groups, including Hilton Worldwide, were believed to be in discussions to buy the hotel and add the property to its Waldorf Astoria stable.

The refurbishment of the building was expected to top $58m.

CONDO OWNERS ‘EXCITED FOR REJUVENATION’ OF ‘TIRED HOTEL’

Private residence owners at the Palazzo Versace property say they are excited for a “refresh” as they prepare for the House of Versace fashion brand to part ways with the iconic hotel.

The property at the Spit includes 72 private luxury condos overlooking the waterways, offering owners an unrivalled lifestyle.

One condo owner at the property supplied the Bulletin with the following statement: “As sad as it is to see the Versace brand exit, we must focus on the future of our prime location at the Spit at Main Beach.

The hotel will be dramatically altered.

“Endless possibilities await as we anticipate the rebranding of our much-loved hotel that we are fortunate enough to share as part of our lifestyle experience while we await to hear what comes next.

“Our focus will be dedicated to maintaining the integrity of our private waterfront residences and marina.”

Others spoken to said they were aware of the looming end of the association between the hotel and House of Versace but “excited for rejuvenation”.

“It was originally designed as an iconic landmark and timeless style of building,” said one owner. “I’m excited for a rejuvenation and renewal. In comparison to other properties, the way this was built with Italian marble and built a certain way, we were lucky in that regard – but are excited to see what the next step is.”

Another added whatever came next, the property position was among the best on the Gold Coast and would never be built out, given a three-storey height limit for the Spit.

“As far as the real estate is concerned, we are in the most beautiful position on the Gold Coast.

“The Spit masterplan is happening but they can’t go higher than three storeys, which is what we are. So we can’t ever be built out.”

As for the property itself, they added: “It needs a kiss. It’s very tired and if we are going to keep up with the relatives in the street (so to speak), the hotel needs to lift their game.

“If that means a rebrand, then we welcome a fresh perspective for the property,” the condo owner said.

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Originally published as Palazzo Versace: Massive change coming to luxury Gold Coast hotel after House of Versace meeting