Lex Favios advised hotel Melwa Hotels & Resorts, a Sri Lankan company, when it signed six management agreements with Hilton. Melwa is to invest US$100 million to construct six new properties in Sri Lanka that Hilton will manage – three Hilton Hotels & Resorts and three DoubleTree properties.
Commenting on the transaction, Dewan told Asia Business Law Journal that the key challenge was dealing with a large hospitality company that provided a standard template for the contract, and ensuring the client’s concerns were addressed. “We were able to find middle ground on a number of issues … [Hilton] on its part also took cognizance of the fact that local issues need to be addressed,” said Dewan.
In 2015 Lex Favios advised the Mushtaq Group of Hotels when it similarly signed contracts with the Carlson Rezidor Hotel Group for the management of seven hotels in Kashmir.
Legal counsel: Hilton was represented by its in-house team from Singapore. The Lex Favios team was led by managing partner Sumes Dewan and comprised senior associate Payal Lamba and associate Varun Narad. Lex Favios was responsible for drafting, vetting and negotiating the manage-ment agreements on behalf of Melwa.