Popular Mexican restaurant Puerto 99 in Dubai faces eviction from Waldorf Astoria for unpaid rent of $1 million

Dubai: The Puerto 99 Mexican restaurant, situated within the Waldorf Astoria Hotel in the Dubai International Financial Centre (DIFC), is facing closure following a recent order by the DIFC Courts.

The court has ruled in favour of the hotel owner, Ward Holdings (trading as Waldorf Astoria DIFC) ordering the restaurant operator to leave the premises due to Dh3.5 million (approximately $1 million) in unpaid rent.

The legal battle centred on a lease agreement signed by Dubai's Meshico Corporation, operator of Puerto 99, in June 2022. The hotel owner, acting as the landlord, told the court that the restaurant failed to make rent payments as agreed.

After multiple warnings, the landlord terminated the lease in November 2023 and attempted to regain possession of the property in January 2024 by changing the locks, according to court documents seen by Gulf News.

However, the court heard that the restaurant’s team later gained access to the property under the pretense of collecting food supplies.

Instead, they forcibly re-entered, changed the locks again, and continued to operate. Since August 2023, the restaurant has remained in the space without paying rent.

The hotel owner requested an immediate judgment from the court to regain possession of the property. The restaurant, in its defense, argued that it faced financial difficulties due to alleged issues with the building’s air conditioning system, which it claimed made the space difficult to operate. It sought more time and a different type of court process, arguing there were significant disagreements over the facts.

However, Justice Rene Le Miere rejected the restaurant's arguments. The judge confirmed that the landlord had rightfully ended the lease. The court's order states that the restaurant must immediately vacate the property and hand over vacant possession.

The judge found that while the restaurant claimed the air conditioning was a problem, this didn’t justify withholding all rent, especially since the restaurant continued to operate.

The court also noted a lack of clear evidence to support the restaurant’s claims of heavy financial losses directly tied to the air conditioning.

Crucially, the court found the restaurant’s actions, including forcibly re-entering the property after being denied access and continuing to operate for months without payment, went against principles of fairness.

The judge also highlighted that the restaurant had not sought proper legal remedies earlier, such as requesting special permission from the court to stay in place despite the lease being terminated.

The court further noted the restaurant’s limited financial resources, citing its previous lawyers' withdrawal from the case due to non-payment of fees. This suggested a slim chance for the landlord to recover money even if the restaurant stayed.

As a result of the ruling, the restaurant has also been ordered to pay the landlord’s legal costs for the case. The order was issued on July 10, 2025.