$114M Palazzo Versace acquisition falls over

The Palazzo Versace hotel on the Gold Coast is no longer for sale.

The $114 million deal to sell the hotel to Shakespeare Property Group has fallen through, however it looks as though another buyer is in the wings.

Shakespeare, which has a $1 billion portfolio across Australia and is the commercial property arm of Prime Value, has declined to comment, however it is understood negotiations hit an impasse in September.

“We were told by the owners a few weeks ago,” a Versace staff member said.

“It’s just business as usual for us now.”

JLL Hotels & Hospitality has been trying to sell Palazzo Versace for nearly a year.

Current owners Dong Run Group acquired the 200-room luxury hotel for $68.5 million in 2012 and included several Chinese and Australian-based shareholders.

Rumours are now swirling that luxury hotel groups including Hilton Worldwide are in discussions to buy the 22-year-old hotel.

If rumours are true, Hilton would add the property to its Waldorf Astoria stable – the second in Australia following the Circular Quay development in Sydney. It estimated the transition from Versace to Waldorf would cost approximately $58 million.

A rebrand would see the buyer remove all Versace branding, including Medusa tiles in the walls and floors of each guest room.

The Palazzo Versace has played host to U2’s Bono, Beyonce and Jay Z, Pamela Anderson and Snoop Dogg.

AHD - 17th October 2022