A reality group that runs the swank Gramercy Park Hotel has sued a wealthy Icelandic couple over what they believe was a cheap kitchen installed in the company's hotel apartment.

Paramount Realty Group of America Corp. claims the IKEA kitchen placed in the apartment the couple rented for about $300,000 was "ugly" and not suitable for the luxurious home.

The suit says Jon Asgeir Johannesson and his wife failed to make promised renovations on time and put in the kitchen from the low-cost household furnishings store into the 16th-floor apartment.

Johannesson, who helped make Baugur Group of Europe a retailing powerhouse, could not be reached for comment.