Sun Travels has completed the payments awarded to Hilton by the Singapore arbitration due to the discontinuation of the management agreement, which stemmed from the handover of the operations of Iru Fushi Resort, Noonu Atoll, to Hilton subsequently. The agreements pertaining to the management of Irufushi Resort, established by Maldives Development Alliance (MDA) leader and Parliamentarian Ahmed Siyam, were invalidated by Sun Travels in 2013. Following the cancellation, Singapore's arbitration ordered Sun Travels to reimburse USD 24 million.
In a press release by Sun Travels following the issue, the company announced that all payments awarded by the arbitration had been paid as ordered, along with an interest totaling USD 31.2 million, which was paid directly to Hilton. The press release also disclosed legal and additional expenses amounting to USD 5.6 million in total.
The press release outlined several disadvantages faced by Sun Travels during the three-year period in which Iru Fushi resort's management was handed over to Hilton. During Hilton's management, costs were inappropriately high due to the purchasing of consumables and supplies to the resort through frauds or at irrelevant high prices. Additionally, Hilton paid huge sums to various labor agencies, which did not meet regular market rates during recruitment processes for the resort. Sun Travels further confirmed reimbursement to Hilton upon not attaining the expected profits, with the assistance received from other companies connected with Sun Travels. This led the company to take drastic measures, including rescheduling the loan repayment of the company.
Stressing the financial burden Sun Travels faced due to Hilton's actions, the company confirmed that the decision to invalidate the management contract was necessary to prevent the company from reaching bankruptcy, to preserve Sun Travel's interest, and to sustain the company's image. It further unveiled ongoing efforts to recover from the losses and to seek legal assistance.
Irufushi Resort commenced as a five-star luxury hotel with a capacity of 221 rooms. The resort, established by Sun Travels in Medhafushi, Noonu Atoll, is the first tourism resort inaugurated within the atoll.