FIVE remains in control of Palm Jumeirah hotel, says CEO

Viceroy had secured an injunction against FIVE from taking control of the multi-billion dollar hotel
Dubai-based real estate development and hospitality group FIVE Holdings has insisted that it remains in control of the Palm Jumeirah Dubai hotel and residences.
By Staff writer
Sun 02 Jul 2017 04:30 PM

Dubai-based real estate development and hospitality group FIVE Holdings has insisted that it remains in control of the Palm Jumeirah Dubai hotel and residences.

A legal battle has emerged between the owner of the property, FIVE Hotel FZCO, and the previously appointed operator Viceroy Group.

On Monday June 19 last, FIVE Holdings dramatically took over operation of the Viceroy Palm Jumeirah hotel, less than three months since its official opening, and launched its own hospitality brand FIVE Hotels & Resorts.

In response, Viceroy successfully acquired an injunction from DIFC Courts prohibiting the FIVE Holdings from preventing Viceroy Hotels and Resorts from managing and operating the hotel. Viceroy claimed the owner’s actions at that time breached the existing hotel management agreement, adding that it would take steps to ensure that the hotel’s owner complies fully with the terms of the court order and the hotel management agreement.

In response today, FIVE Holdings has issued a press statement saying that FIVE Hotel FZCO continues to manage the FIVE Palm Jumeirah Dubai hotel and residences.

“We will take all steps to ensure the interests of the hotel’s employees, guests, investors and stakeholders remain protected and are never compromised. This to us is our single most important guiding principle,” said Kabir Mulchandani, chairman and CEO, FIVE Holdings.

FIVE Holdings said that all legal impediments preventing it from operating the hotel have been removed.

“Pursuant to the Decree and the reference to the Dubai Joint Judicial Committee, all proceedings between ASSAS OpCo Limited and VIH Dubai Palm Jumeirah Ltd (Cayman Islands), the property’s former operator, have been suspended by force of law,” the company said in its statement.

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