Sun Travels has paid US$31 million, including interest, to Hilton after losing an arbitration over its 2013 termination of the agreement under which Hilton managed Iru Fushi Resort in Noonu Atoll. In a statement, Sun Travels alleged that Hilton entered the agreement through fraud and deception, and said it will seek further legal remedies.
One outlet so far Only Maldives Republic has reported this among the sources we monitor. A gap in what we monitor, not proof that others did not report it.
On 27 February 2009, Sun Travels signed an agreement with Hilton to manage Iru Fushi.
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Sun Travels said in a statement on Monday that it has now paid Hilton US$31 million, including interest, in connection with the case
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The purpose of this was to deceive Sun into signing the agreement by fraudulently showing the company that they would make huge profits if the resort was run under Hilton's management,
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Sun Travels said in a statement on Monday that it has now paid Hilton US$31 million, including interest, in connection with the case
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Sun Travels was ordered to pay US$29.6 million (MVR 454.4 million) in damages.
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the company had spent an additional US$5.6 million on legal and other related expenses.
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Hilton submitted a much lower revenue forecast, with room rates reduced to 50 percent, as were gross operating profits.
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After the agreement was signed in July 2009, the resort began operating under the Hilton brand.
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However, in April 2013, Sun Travels cancelled the agreement, citing that Hilton had repeatedly violated its terms.
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Hilton then, in May 2013, filed a case with the International Court of Arbitration of the International Chamber of Commerce (ICC).
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As damages remained unpaid, Hilton, in 2020, filed a case at the Civil Court seeking the award payment. As a result, Sun Travels’ bank accounts were frozen as part of an enforcement action.
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