Palazzo Versace hotel owner says Main Beach property is ‘not for sale’

The opulent hotel has gone on the front foot in response to conjecture about the Main Beach property’s future.

THE Palazzo Versace hotel is not for sale – that is the blunt message from the Chinese owner of the ‘opulent’ Gold Coast destination.

The hotel has gone on the front foot in response to conjecture about the Main Beach property’s future.

Speculation started after the hotel last month began standing down 200 staff – a move it this week termed ‘heart-breaking’ - and stopped trading.

It heightened after some of the owners of the hotel’s 72 condominiums called a meeting for this week to air grievances with the hotel’s management.

Further fuel was thrown on the flames by a report that the hotel’s owner since 2012, the Dong Run group, might not renew the licence to use the Versace name when it expires later this year.

Palazzo Versace on the Gold Coast is closed due to the Covid 19 outbreak. Photo: Adam Head

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In a statement to the Bulletin the hotel said it was, like many businesses hit by the full force of the Covid-19 pandemic, and forced to abruptly reposition and rebalance, emotionally and financially.

“The hotel will resume full trading as soon as possible. We also wish to address allegations aired in the media and elsewhere, such as the owner is spending money on major renovations ahead of our employees’ entitlements, that the hotel is for sale and that the hotel is involved in an ongoing dispute with the condominium owners.

“These allegations are untrue, deliberately hurtful and opportunistic. The hotel needs to repair storm damage where heavy rain and flooding damaged the northern and southern wings.”

Palazzo Versace. Photo: Adam Head

The Palazzo Versace statement said the hotel was not for sale and the owner reaffirmed its commitment to the hotel, the Palazzo Versace brand, and everything that was opulent about the hotel.

“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 hotel expects those issues to be resolved in the fullness of time. Our owner and senior management remain committed to welcoming guests and team members alike back to the iconic and beautiful testament of Gianni Versace’s vision that is Palazzo Versace Gold

Coast.”