Top court orders Juffair hotel to pay BD40,000 in disputed revenue case

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

The court battle over revenue sharing from a facility within a Juffair hotel concluded with the High Civil Court ordering the hotel to pay a hotel management company BD40,000, along with BD1,000 for expert fees, court costs, and legal fees.

The dispute stemmed from disagreements over the contract between the plaintiff, the management company, and the hotel. According to Zahir Abdullatif, the plaintiff's lawyer, the company had managed and operated the facility from August 30, 2021, to August 29, 2022.

The contract stipulated revenue sharing based on a predetermined ratio, with the hotel responsible for collecting and paying the company's share within 10 days.

Abdullatif stated that despite the facility generating BD97,906 in revenue, the hotel had only paid BD8,648, leaving a balance of BD40,205. On April 30, 2022, the company's access to the facility was revoked, citing contract termination.

To resolve the dispute, the company hired an accounting expert, whose report concluded they were owed BD44,613, covering seven months of revenue plus development costs.

The hotel countered with its own expert report claiming no outstanding payments and asserting the company owed BD929. The court reviewed the hotel's monthly revenue statements, which were undisputed, and found them valid.

It also deemed the plaintiff's expert report credible, based on thorough analysis. Consequently, the court ruled the hotel failed to prove full payment to the plaintiff and ordered it to pay BD40,250, plus 3% annual interest from the claim date until settlement. Additionally, the hotel must cover expert fees, court expenses, and legal fees.