Business Tourism

Hilton to appeal verdict ordering USD16 mln payment to Sun Travels

Aerial view of Sun Siyam Iru Fushi Resort. PHOTO/IRU FUSHI

Renowned hotel chain Hilton International vowed to appeal the Civil Court’s verdict ordering them to pay USD 16.6 million to Sun Travel and Tours over Hilton’s mismanagement of Sun Siyam Iru Fushi Resort.

Hilton International’s spokesperson told Mihaaru that the firm’s management is irked by the lower court’s verdict which they do not recognise as lawful.

The management of Sun Siyam Iru Fushi Resort, which is owned by Maldives Development Alliance’s leader and Meedhoo MP Ahmed Siyam Mohamed, was awarded to Hilton International in 2009 by Sun Travels. The local firm later terminated the agreement in 2013, sixteen years before the end of the contract.

Hilton had filed a lawsuit against Sun Travels at the Singapore International Arbitration Centre, which subsequently ruled in favour of the former and ordered Sun Travels to pay USD 26 million to Hilton as damages for contract termination. Hilton has since filed at the High Court to execute the Arbitration Centre’s verdict.

In the midst of Hilton’s lawsuit, Sun Travels had filed against the hotel brand at the Civil Court, accusing Hilton of deceit and deception in their contract to operate Iru Fushi, thus violating their agreement in managing the resort. The lower court had ruled in favour of Sun Travels and ordered Hilton to pay USD 16.6 million as compensation for damages caused in resort management.

Full details are available from the link below:

Source URL: Mihaaru-News

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