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DIFC Courts rules on Dubai's Viceroy dispute

The ruling confirms Viceroy's "exclusive authority to manage and operate" the hotel, adding that the company's signage and branding must be reinstated at the facility

Viceroy has been confirmed as the operator of the Palm Jumeirah hotel.
Viceroy has been confirmed as the operator of the Palm Jumeirah hotel.

A ruling issued by DIFC Courts has confirmed Viceroy as the operator of the Viceroy Palm Jumeirah Dubai hotel.

Furthermore, the ruling prohibits the hotel's owner from committing any actions that would prevent Viceroy Hotels and Resorts from exercising its "exclusive authority to manage and operate" the facility. 

On 19 June, 2017, Viceroy approached Dubai Courts, announcing "the purported takeover of the hotel by Five Hotels and Resorts, a company affiliated with the hotel's owner, and took steps [attempting] to remove Viceroy from the property". 

The owner's actions are said to have breached the hotel's management agreement. 

"Viceroy is currently taking steps to ensure that the hotel’s owner complies fully with the terms of the court order and the hotel management agreement," a WAM report stated.

In line with DIFC Courts' order, Viceroy's name, signage, and branding, will be reinstated at the facility, a senior official said. 

Bill Walshe, chief executive officer of Viceroy Hotel Group, added: "Contrary to the hotel owner’s statements and subsequent media reports, Viceroy has always been, and remains, the legal operator of the Viceroy Palm Jumeirah Dubai.

"Our priority remains to work with our outstanding hotel colleagues to ensure continuity of service and consistent delivery of a guest experience in keeping with the Viceroy ideology.

"We will continue to work strenuously with our legal team to ensure we achieve this."

ConstructionWeekOnline has approached Five Holdings, the master company of Five Hotels and Resorts, for a statement, and will update this story as and when a reply is received. 

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Construction Week - Issue 738
Apr 21, 2019