Australian tycoon turns on luxury hotel chain Hyatt

SYDNEY: 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 that the injunction was in place, but said no comment would be issued given the matter was before the courts. (AFP)