This time the Queensland mining magnate is suing Hyatt Hotels for $60 million he claims it has misappropriated from the Sunshine Coast resort known as the Hyatt Coolum since 1988. Palmer bought the resort last year for a reported $80m.
“We believe Hyatt has been siphoning funds over the years back to their headquarters in Chicago and there has been a major cover-up of these activities,” Mr Palmer said in a statement.
In the statement, Mr Palmer attacked Hyatt’s performance. “The Hyatt has managed the property for 24 years, but in that time it has just led to millions of dollars in losses to the owners. The agreement has been based on increasing turnover rather than making a profit, a flawed business model which was delivering substandard results for stakeholders.”
Hyatt Hotels responded that: “We are extremely surprised to receive notice that the hotel’s owner wishes to terminate our long-standing management agreement and strongly disagree with Mr Palmer’s characterisation of our performance. Hyatt is currently considering its position.”
The Australian says Hyatt yesterday won a temporary injunction to remain in charge of the resort after being sacked.
Who knows where it goes from here. The only certainty is it will get ugly.
Mr Palmer is a contentious figure with a history of litigation and is also currently at war with the Football Federation of Australia over mangement of his football team Gold Coast United.