Outgoing Palazzo Versace GM Jane Kingston says condo owners have no right to attach the name to their properties
Outgoing Palazzo Versace general manager Jane Kingston says condo owners have no right to attach the name of the famous Italian fashion house to their properties. HERE'S WHY
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OUTGOING Palazzo Versace general manager Jane Kingston says condo owners have no right to attach the name of the famous Italian fashion house to their properties.
Ms Kingston, who recently resigned after a controversial stint running the swanky hotel in Main Beach, said the $1 million-plus annual licensing fee is paid by the hotel and not the condo owners.
Ms Kingston’s last day is May 14.
“Those condominiums don’t go under Palazzo Versace,” Ms Kingston said.
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“They have no right of licence whatsoever to use the name. Absolutely none.
“They (the condominiums) have always been known as Al Destra and Ala Sinistra.
“Owners are running around going, ‘Oh, you know I have my penthouse at Palazzo Versace’, but it is by association only.”
INSIDE STORY OF FAMOUS LUXURY HOTEL PALAZZO VERSACE
Palazzo Versace contains 72 residential condos and 200 bedrooms and suites.
The condos share the cost of running the property with the hotel owner.
The licence to use the Versace name has been the subject of speculation for years.
In 2020 the Bulletin reported that it was due to expire at the end of the year, with owner Dong Run Group said to be tossing up whether to renew the licence given the considerable expense of upgrading the hotel to Versace’s standards.
The hotel has attracted substantial criticism from owners and guests over what they say are falling standards and poor maintenance at the hotel where rooms cost between $375 to $3065 a night.
In February, the Bulletin reported savage reviews from TripAdvisor including one Brisbane visitor who said grout was falling out and in need of repair “throughout the entirety of the complex” while another guest likened the main outdoor pool to “swimming in Parramatta River”.
Versace was bought by New York-based Capri Holdings in 2018 for €1.83b ($2.85b) although Ms Kingston said the House of Versace still retained the use of the name outside of fashion branding.
She intimated that the hotel would one day have a different name.
“It is a difficult hotel to run because you’re respectful to the brand. We pay royalties, we pay a licence fee for that brand and it is not going to be there forever,” she said.
“What will it be? It will be another luxury hotel.”
Ms Kingston said some owners who want to separate from the hotel and engage their own security and cleaning services were ignorant of the true cost of the Versace name.
“They have no idea that you have got to actually go and buy the licence and pay.
We are talking over $1 million a year and they pay not a red cent towards it.”
A Palazzo Versace owner said there had been no update on the licensing issue by Ms Kingston.
She said condo owners were dismayed at being told they were not entitled to use the Versace name.
“The condos are rented out using the Versace name,” the owner said.
“On the sale contract it clearly says it is Versace.”
The owner referred to the Palazzo Versace website where guests can book condominiums that are tagged as “Palazzo Versace Gold Coast condominiums”.
“If it is not a Palazzo Versace condominium then why is the hotel obtaining a financial benefit from renting them out as such.”
The owner said they would be happy to contribute to the licensing fee “but it has never been on the cards”.
Bitter dispute not reason behind Versace GM resignation
April 28, 2021
PALAZZO Versace general manager Jane Kingston says her resignation has nothing to do with a bitter dispute with condo owners who “don’t know what the hell they want”.
Ms Kingston has faced a barrage of criticism from condo owners complaining about poor maintenance and excessive management fees since she took over in January 2020.
Events boiled over this year when Ms Kingston said she was tired of a “barrage of abuse” from wealthy condo owners.
One owner had taken aim at Ms Kingston claiming they were not notified of a blackout and had been unable to contact security.
Ms Kingston told the Bulletin on Tuesday she had decided to resign to take up a “tremendous opportunity” in Sydney.
“I have to say I have never been in a position like it,” Ms Kingston said.
“It would make your hairs stand on end. Never in all my years have I been on the receiving end of such acidity, such self-entitlement.
“It really is so disappointing, particularly when it’s aligned to a human being. It really is disgraceful.”
Ms Kingston said she took on the job to “bring Palazzo back” to its former glory.
“My job was to bring Palazzo back to a successful operation and to a degree I have certainly achieved that,” she said.
“We have had the biggest April ever, but unfortunately it has a long way to go as well.”
Ms Kingston said it was one of “the most challenging hotels” to run in Australia.
“I have to say when you walk in there, if you are a GM that is looking to grow your ego … forget it. You have to walk in, roll your sleeves up, make sure you have a strategy and plan," she said.
“When I walked in there I had $3m of storm damage (to deal with). I have been dealing with insurance companies, body corporates, building companies.
“I know more about the HVAC Systems than HVAC Systems do.”
She said she was not leaving to bow to pressure from condos owners, adding: “I just brush that off.“I take that with a grain of salt because most of it is so shallow and hollow. They actually don’t know what the hell they want. They want to separate from the hotel (services), but I’ve always said, ‘go separate, doesn’t bother me’.
“You bought in here because you want to be associated with the hotel. You wanted to be associated with the name.”
The Bulletin understands that the hotel owner Nanbai Aus Pty Ltd, which bought the hotel in 2012, has moved to cut its caretaking agreement and letting agreement with condo owners after they failed to pay $557,320 in outstanding electricity, management and insurance fees.
In response, condo spokesmen wrote they were disputing the figures.The spokesmen said the figure of $179,000 for insurance (includes $120,000 paid up) was assessed by three independent lawyers who “all agree the figure … is incorrect”.
They added the management fees included fees that Nanbai had failed to invoice body corporate company Euthella in the past and was trying to recover.Regarding the electricity they said they had not been provided the original invoices from the electricity provider after requesting them through Ernst Body Corporate Management.
‘Douse me in petrol’: Extraordinary email in bitter Versace row
January 25, 2021
PALAZZO Versace’s general manager fumes she’d rather be “doused in petrol” and set alight than deal with a “barrage of abuse” from wealthy condo owners.
The extraordinary statement is contained in an email from Jane Kingston to condo owner and recruitment millionaire Sarina Russo’s lawyer David Ormesher.
It adds fuel to an escalating dispute between condo owners and management of the swanky hotel resort over what they consider excessive management fees.
The latest argument blew up when Mr Ormesher emailed Palazzo Versace general manager Ms Kingston on January 19 complaining condo owners were not notified via the speaker system the cause of a “total blackout” at 12.52am was not because of an emergency such as a fire.
“Owners would reasonably be on alert there may be an emergency situation such as a fire,” he said.
“Accordingly, the customary process with commercial and most residential buildings is initially there is advice over the speaker system as to the nature of the outage and of course, any instructions such as to evacuate.”
He said Ms Russo was unable to contact security and in the circumstances was left with no choice but to call triple-0 “to verify if they were aware of the nature of the emergency”.
“In Sarina’s conversations with Triple 0 services, they too confirmed they had tried several times unsuccessfully to contact Versace security,” he said.
“Naturally, this is a disappointing response against reasonable expectations. It is appropriate this is duly put on record and a response is provided from the Hotel and/or Body Corporate regarding the non-functioning of the speaker system and the delayed security response.”
Security manager Peter Carmody then responded to Ms Kingston, in a message forwarded to Mr Ormesher, that he did not agree the outage was a “significant incident”, stating it happened when most residents were asleep.
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He said to use the emergency speaker system to inform residents “would amount to be a non-justifiable action taking into account there was in fact no emergency situation causing imminent danger to life or property”.
“Guests and residents who were awake at the time, had no problem contacting the security mobile, which is all logged,” he said.
“There is no log of your client contacting security. To suggest there was non-functioning of the speaker system and a delayed security response is nothing short of a complete slur upon the integrity of the security department.”
Ms Kingston then sent a message to Mr Ormesher that a requirement to qualify his actions under the gaze of a “critical audience” was becoming tiresome.
“Perhaps instead of the consistent public flogging and interrogation hotel team members including myself are subjected to, it may be easier for you to douse me in petrol and perhaps (body corporate committee member) Nicky Fitzhenry can light the match as it would quite honestly be less painful than the constant barrage of ‘abuse’ that is received,” she said.
Ms Kingston said the hotel was still providing security despite unpaid management fees.
“If this email is a further attempt to discredit the hotel services and operation, it should be noted we are fully aware of some condominium owner’s (sic) intent to disengage all hotel services which we have no objection to.
“However, it should be noted this will come at a significant expense to all condominium owners considering the necessary hardware and software that will be required should you discard the hotel services.”
The Bulletin made multiple requests to Palazzo Versace for comment but received no response.
A Palazzo Versace owner said there was an ongoing dispute between owners and management over what they considered excessive fees.
“Condo owners are not happy with the level of service,” the owner said. “What they are trying to do is make the hotel accountable in terms of its maintenance.”
He said that was difficult when the body corporate committee was dominated by the hotel with three representatives to the owners’ two.
The dispute has been brewing for months.
Last year after the hotel closed due to coronavirus pandemic, staff were stood down, and owners met to air their grievances with the hotel’s management.
At the time the hotel’s owner – Dong Run Group – issued a statement saying allegations there was a dispute with the owners were “untrue, deliberately hurtful and opportunistic”.
It said it had needed to repair storm damage where heavy rain and flooding had damaged the northern and southern wings.
“The hotel is trying to resolve complaints from a minority of condominium owners in order to ensure stable and profitable management for all at Palazzo Versace Gold Coast,” the company said.
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