Palmer to sue Hyatt hotels

Clive Palmer

Rockhampton Morning Bulletin

Related links

• Coolum resort in administration
• No decision from Hyatt hearing

MILLIONAIRE businessman Clive Palmer has announced a $60 million lawsuit against international hotel operator Hyatt Hotels Corporation after terminating the company's management agreement with his luxury golf resort and spa at Coolum.  

Mr Palmer announced today that the resort would now be known as The Coolum Golf Resort and Spa, ending a 24 year association between the global hospitality company and the flagship Sunshine Coast tourist landmark.  

He accused Hyatt of allegedly syphoning $60 million in funds from the Coolum resort over the past two decades.  

An application against Hyatt will be filed in the Queensland Supreme Court and a complaint will also be made about Hyatt's activities to authorities in the United States, he said.  

"We believe Hyatt has been syphoning funds over the years back to their headquarters in Chicago and there has been a major cover up of these activities," Mr Palmer said.  

"We have uncovered this activity since taking over the resort last year. This should of concern to the operators of other Hyatt resorts around Australia and worldwide."  

Mr Palmer said poor performances by Hyatt on behalf of the owners and their lack of consultation and commitment with resort staff were the main reasons behind the decision to sack the company as resort managers.  

"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,'' Mr Palmer said.  

"The agreement has been based on increasing turnover rather than making a profit, a flawed business model which was delivering substandard results for stakeholders.   

"The Hyatt hasn't given the property the priority it deserves. The Hyatt Group doesn't even have a full-time employee in Queensland and we believe they are not even represented in Australia.''  

Mr Palmer said he would invest a further $2 billion developing his Queensland tourism assets, with The Coolum Golf Resort and Spa receiving significant attention.  

The resort's 650 staff will benefit immediately, with Mr Palmer paying workers a $500 bonus each.  

"I have addressed all the staff and I was surprised to learn that they had never been paid a bonus before," he said. "Everybody will be paid a $500 bonus immediately, and we plan to make bonuses an ongoing part of our staff incentive structure under a profit-based system that will see The Coolum Golf Resort and Spa exceed all expectations as a place to work, visit and invest.''  

Mr Palmer has appointed his long-time senior executive Bill Schoch as general manager of the property to replace Maurice Holland.  

"I have the utmost confidence in the current staff led by Bill delivering future success for the resort and the region as a whole,'' he said.  

Mr Palmer said the resort would continue to be home to the Australian PGA golf championship and would be looking to bring additional high-calibre events to the Sunshine Coast.