Los Angeles-based firm says it has obtained favourable ruling from the Joint Judicial Committee of Dubai
Dubai-based Five Holdings said it's "business as usual" at Five Palm Jumeirah, despite Viceroy Hotel Group claiming "favourable ruling" in its ongoing dispute over the $1 billion luxury hotel.
In a statement, Viceroy Hotel Group said it obtained a favourable ruling from the Joint Judicial Committee of Dubai in its dispute with Kabir Mulchandani over the management and branding of the hotel.
The LA-based hotel firm said the ruling obtained in Dubai enables Viceroy to enforce the injunction it obtained from the DIFC Courts against Mulchandani on June 22 this year.
Viceroy said the injunction requires Mulchandani to restore its branding and management to the hotel.
"Viceroy intends to take all steps necessary to enforce the DIFC Courts' injunction, re-enter the Viceroy Palm Jumeirah Hotel and restore the Viceroy branding," the hotel firm said in its statement.
In response, Five Holdings said "there is no injunction or order of any kind against the owners of the hotel or Kabir Mulchandani" or FiveHotel FZCO.
"We are pleased to announce that the case against Viceroy’s affiliate in the local Dubai Courts for the sum of AED500 million has been allowed to proceed by the Joint Judicial Committee of Dubai," Five Holdings added in its statement.
Five Holdings, whose affiliate company is the legal owner of the Palm Jumeirah hotel in question, entered into a management agreement with Viceroy in 2013, under which the US company would operate the hotel, with its name above the door.
However, on June 19, Five dramatically seized back control of the hotel, terminating the contract with Viceroy and changing all of the hotel signs overnight from the Viceroy Palm Jumeirah Dubai to Five Palm Jumeirah Dubai.
On September 7, Five Holdings and affiliated parties filed a lawsuit against Viceroy in Los Angeles alleging multiple counts of financial fraud and mismanagement against the hotel group. The lawsuit claims operation of the $1bn hotel by Viceroy has been a catalogue of errors since its opening in March.