Land Value Dispute
A hotel developer in Country A purchased resort land in Country B. Three years later, government of Country B informed land owner that the deed was issued in error and purchaser really owned another parcel away from the beach. The land purchaser asked to reverse the transaction but Country B claimed the land had no value as it would not have been feasible to develop a resort in such a remote location.
Country B hired the development president of a major global hotel company to testify regarding the traditional (ULI approved) feasibility determination process. Horwath HTL expert testified that the Country B expert was, in fact, correct regarding traditional hotel development. However, for non-traditional brands, such as the one selected for the subject property, the journey to remote locations was part of the thrill of the experience, and the brand’s expertise was key to developing a resort in remote locations, as this brand had done in other parts of the world.
Awaiting determination of World Court Tribunal