Dubai-based Five Holdings has launched a legal case against Viceroy Hotels in Los Angeles after estimates that it may have lost more than US $100 million in contracts because of 'alleged' interference, according to a Bloomberg report.
Five Holdings owns Five Palm Jumeirah Dubai and has claimed that the former operator, Viceroy Hotels, is "scaring off visitors".
Prior to termination of Viceroy's management contract to run the Palm Jumeirah property, "investigations by two respected accounting firms into the operations of the hotel have revealed fraudulent accountings, breach of trust, self-dealing, doctored invoices, phony budgets, unapproved budget overruns, and concealment of mismanagement by Viceroy Dubai," Five Holdings said in the complaint.
This is the latest legal tussle between the two companies.
On July 2, Five Holdings insisted it was managing the Palm Jumeirah property; however, Viceroy Hotels and Resorts released another statement in response last night saying that its DIFC Courts injunctionremains in place but its team is being denied access.
The July 2 Viceroy statement said: "Viceroy requested the DIFC Courts’ assistance following the actions taken by Kabir Mulchandani on Monday 19 June, when he announced the purported takeover of the hotel by Five Hotels and Resorts (“Five”), a company affiliated to him, and took steps to remove Viceroy from the property. These wrongful actions are a breach of the hotel management agreement. The owner of the hotel has since refused to either acknowledge the orders of the DIFC Courts or allow Viceroy entry."
The case is Assas Development Ltd. v. Viceroy Hotel Management Inc., BC674956, California Superior Court, Los Angeles County.
Advertisement
Search our database of more than 2,700 industry companies
