US$ 54.9 Million Lawsuit against Starwood Results in S$10 Ruling by Singapore High Court

The High Court of the Republic of Singapore has dramatically reduced the claim made by Asia Hotel Investments Ltd. (AHIL) for substantial damages of US$54.9 million from Starwood Asia Pacific Management Pte. Ltd. to a mere S$10 (Ten Singapore dollars). The judge ruled that AHIL never established that their failure to acquire the majority shares of Grand Pacific Hotel in Bangkok was caused by Starwood.

In the written ruling, the judge concluded that "[t]heir only witness, Gary [Murray], convinced me through his evasiveness, contradictions, unsubstantiated claims and generally unsatisfactory evidence that Asia Hotel had no real or measurable chance" of securing the majority shares and that "Asia Hotel and Gary were clearly outclassed by the Narulas in the race for the [majority] shares and were hoping to find a convenient scapegoat to unjustifiably fill their coffers." "Asia Hotel either could not raise this sum or did not want to commit such a large amount of money before they were ousted by the Narulas."

"We are very satisfied with the Singapore High Court ruling which has vindicated our steadfast position that Starwood did not cause the plaintiff to lose its right to acquire the hotel," said William Snipes, Starwood's Vice President and General Counsel. "A suit that had started off with a claim of US$54.9 million and has now resulted in nominal damages of S$10 is indicative of the lack of any real substance in the allegation."