updated 2/25/2010 3:39:27 PM ET 2010-02-25T20:39:27

A wealthy Icelandic couple is being sued for installing a cheap IKEA kitchen into an apartment they rented out at a swank hotel in New York City.

The lawsuit filed in Manhattan Wednesday alleges that Jon Asgeir Johannesson and his wife installed an "ugly" kitchen from the low-cost household furnishings store into the 16th-floor apartment at the Gramercy Park Hotel.

The lawsuit filed on behalf of the Paramount Realty Group of America Corp. claims the couple rented the apartment out for about $300,000, then failed to make promised renovations on time.

When they did, the lawsuit claims the kitchen was unsuitable for such a luxurious home.

Johannesson helped turn investment company Baugur Group into a powerhouse of retailing in Europe.

There was no phone listing for Johannesson at his home.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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