Australian tycoon turns on luxury hotel

One of Australia's richest men, Clive Palmer, was Wednesday embroiled in a legal battle with hotel firm Hyatt, alleging it "siphoned" millions of dollars from a resort he owns to the United States. Palmer, a self-made mining billionaire, on Tuesday attempted to terminate a deal with Hyatt Hotels Corporation to run his golf resort and spa at Coolum in Queensland state, a move that would end Hyatt's 24-year association with the luxury property. In a press release, Palmer alleged Hyatt had "siphoned" Aus$60 million (US$64 million) in funds from the resort over the past two decades back to their US headquarters in Chicago. Hyatt won a temporary injunction staying the termination of the deal in Brisbane's Supreme Court late Tuesday, and management at the resort will be business-as-usual at least until the next court date on March 1. In court, the hotel chain said Palmer's claims were false and the businessman and his companies had breached the terms of their agreements with Hyatt with the sacking, Australian Associated Press reported. Hyatt confirmed to AFP that the injunction was in place, but said no comment would be issued given the matter was before the courts. Palmer, who represented himself at Tuesday's hearing, bought the Coolum property on the Sunshine Coast, which is home to the Australian PGA golf championship, less than a year ago. In his press release, he alleged poor performances by Hyatt on behalf of the resort's owners and their alleged lack of consultation with and commitment to staff was the reason for his decision to sack the company as resort managers. He said the resort's 650 staff would benefit from the change, adding he would pay each an immediate bonus of Aus$500. "I have addressed all the staff and I was surprised to learn that they had never been paid a bonus before," he said. In granting the injunction, Justice Glenn Martin said it was to protect Hyatt's reputation as well as the interests of the owners of villas at the resort. Palmer is estimated to be Australia's fifth richest person thanks to his vast coal and other mining assets in Queensland and Western Australia, with his wealth said to be worth more than Aus$5 billion.