Versace Bought by Michael Kors in US$2.12bn Deal

Main Photo: Palazzo Versace Dubai

Date: September 2018, completed in January 2019

Location: Two hotels – Gold Coast Australia and Dubai Creek, UAE

Names:  Palazzo Versace

No. of Keys: 200 (Gold Coast) and 215 rooms and 169 Residences (Dubai)

Seller: Versace – the whole group, which happens to own/brand two hotels. We haven’t heard, to date (February 2019), what the outcome of the two hotels is.

According to Wikipedia….Soheil Abedian of the Sunland Group visited the House of Versace in 1997 to propose the idea of a Versace branded hotel. He claims Palazzo Versace Gold Coast to be the first fashion-branded hotel.

On his reasons for approaching Versace, Abedian says “Gianni Versace was a lover of architecture in the first place, a person who used in his fashion all the elements of the Baroque style. … Also, Versace was the only fashion house at the time that had a home collection and everything that a hotel needed from the porcelain to cutlery, pillows to fabric.”

The main building was designed in Postmodern architecture style in a broad interpretation of Neoclassical architecture.

In 2005, Emirates International Holdings acquired 50% of Palazzo Versace Gold Coast at the same time entering into a joint venture to develop a chain of hotels including a similar hotel in Dubai.

In 2006 Maktoum bin Rashid Al Maktoum died here. In September 2012 a conditional contract was entered into to sell the hotel complex to a Chinese consortium for A$68.5 million, with settlement expected 30 November.

Palazzo Versace Dubai opened in November 2016 –  The opening party was attended by Donatella Versace, Versace CEO Jonathan Akeroyd and a number of international supermodels.

Versace donated a portion of the couture sales from this week to Dubai Cares, a philanthropic organisation created by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, working to improve children’s access to quality primary education in developing countries.

Raza Jafar, group CEO of Enshaa and Chairman of Palazzo Versace Dubai, said at the time, “Our chairman, Sheikh Tariq bin Faisal Al Qassimi, myself, our shareholders and the management of ENSHAA, are delighted to welcome our esteemed guests as well as our friends and supporters for the grand opening of our luxurious hotel.

UAE developer ENSHAA in conjunction with Versace developed Palazzo Versace Dubai.

Buyer: Michael Kors, another fashion group.

Iconic Italian brand Versace has been acquired by luxury group Michael Kors Holdings in a deal which values the company at $2.12bn (£1.61bn).

Michael Kors confirmed today it has signed a definitive agreement acquire all of the outstanding shares in Gianni Versace S.p.A.

In a statement, Michael Kors announced its intention to grow Versace’s revenues to $2bn and increase its global retail footprint from 200 to 300 stores.

Founded in 1978 in Milan, Versace is one of the leading international fashion design houses, selling a range of luxury clothing, accessories, jewellery and home furnishings bearing the distinctive Medusa logo.

It joins Jimmy Choo as part of the Michael Kors group, after acquisition of the luxury shoemaker in July 2017.

Upon closing the acquisition of Versace, Michael Kors Holdings Ltd will adopt the new name of Capri Holdings Ltd.

John D. Idol, chairman and chief executive of Michael Kors Holdings, said, “The acquisition of Versace is an important milestone for our group. We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth.

“We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth.”

Versace’s chief designer and vice-president Donatella Versace added: “This is a very exciting moment for Versace. It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra.

I am proud that Versace remains very strong in both fashion and modern culture. This is the perfect time for our company, which puts creativity and innovation at the core of all of its actions, to grow.”

THPT Comment: We don’t really know what this means for the two hotels. Following LVMH serious entree into hotels, will Capri Holdings/Michael Kors move also in this direction? Do others have pre-emptive rights?

First Seen: Insider Media Ltd

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