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Hilton ordered to pay US$16m to MP Siyam’s Sun Travels

March 11 20:47 2017

The civil court has ordered a subsidiary of American hospitality giant Hilton Inc to pay US$16.6 million over a claim by Sun Travels that it was defrauded into handing over the management of Irufushi resort.

The judgment comes in spite of a Singaporean arbitration tribunal awarding US$26 million in damages to Hilton for Sun’s abrupt termination of the Irufushi management agreement in May 2013.

Hilton has sought to enforce the August 2015 arbitration award, but the civil court ruled in late November that a way forward on the case must be decided by the high court, which is yet to issue a ruling.

Sun Travels and Tours – owned by MP Ahmed Siyam Mohamed, leader of the Maldives Development Alliance, a coalition partner of the ruling party – meanwhile sued in December claiming that Hilton was unable to deliver profits in line with a 2010-2014 financial projection.

Sun argued that it signed the management agreement based on Hilton’s assurances about profits.

Delivering the judgment on Thursday, Judge Ali Naseer said Hilton was unable to prove that the projections were realistic and declared that Sun Travels was defrauded into signing the agreement based on deliberately false premises.

Full details are available from the link below:

Source URL:  Maldives Independent

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