By Jade Hobman For Daily Mail Australia
03:45 18 Apr 2023, updated 03:46 18 Apr 2023
- Gold Coast hotel to lose Versace brand
- No agreement was reached to renew it
- Brand’s iconic ‘Medusa’ tiles set to go
- Owners are positive about ‘timeless’ hotel
An international fashion power house will ditch its branding of an iconic Australian hotel, leaving the current owners to undertake a ‘refreshing’ overhaul.
The House of Versace walked away from renewing its branding agreement with the Palazzo Versace Hotel on the Gold Coast, which is set to expire by the middle of this year.
The five-star hotel which ‘brings Europe to the Gold Coast’ with its Italian design and Versace furnishings has attracted the who’s who of celebrities including Snoop Dog, Bono, Beyonce and Jay Z.
It is one of only two Versace-branded hotels in the world, the other located in Dubai.
Representatives from the luxury hotel’s Chinese owner Dong Run Group flew to Milan in Italy to talk over its future with the fashion giant.
But it is understood no agreement was reached.
‘The owners have not maintained it to the standard that the House of Versace require so they chose not to renew the licence agreement,’ a source with close ties to the talks told Gold Coast Bulletin.
A condo owner at the hotel said they were positive about the hotel’s future, hoping the rebranding will give the ‘tired hotel’ a new lease on life.
Thousands of the famous ‘Medusa head’ tiles replicating Versace’s famous logo will have to be removed but the main Medusa image in the foyer will remain in the hotel.
The huge chandelier – whose original owner was Gianni Versace, the fashion giant’s founder – will also stay put.
The legendary Italian luxury label branded the five-star hotel at The Spit after the hotel’s builder Soheil Abedian approached Versace in 1997.
Mr Abedian’s company Sunland Group forked out $200million to build the sprawling property.
It is understood tens of millions were spent on marble alone.
The 200-room hotel and its 72 luxury apartments was then acquired by the Dong Run Group in 2012 for $68.5million.
‘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,’ Mr Abedian said on Monday.
‘I hope that will become much better and given the location, it warrants an international brand coming in to manage it.’
A condo owner at the hotel said it was sad to see the Versace brand go but held high hopes the hotel’s rebranding in the prime hotspot had a bright future.
‘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,’ they said.
Another owner said they were excited about the ‘timeless’ hotel’s future of ‘rejuvenation and renewal’.
One investor added the location was the best on the Gold Coast due to the area’s three-storey height limit – meaning the hotel would never be built out.
Sale of the hotel by its Chinese owners has been mooted in the past few years.
Shakespeare Property Group were interested in buying the hotel for $114million but talks came to a stalemate last October.
It is also understood Hilton Worldwide were in discussions to add the hotel to its Waldorf Astoria brand.
Renovations of the hotel were expected to cost $58million.