The State Trading Organization (STO) has announced its decision to withdraw from its hotel business in Hulhumale Phase I. This decision marks the end of a long-standing project that began in 2007 when STO acquired land in Hulhumale Phase I for hotel development.
In 2011, STO partnered with the US-based Carlson Group to develop a 250-room hotel, ‘Radisson Blu’, on the property. However, the project faced numerous delays and did not progress as planned. By 2018, STO attempted to sell the hotel but was unsuccessful despite multiple efforts. This led to an agreement with the Housing Development Corporation (HDC) to jointly operate the hotel. In 2021, HDC announced that it was seeking a group to run the hotel.
During STO’s recent annual general meeting, Managing Director Ibrahim Shimad announced that the company is no longer interested in pursuing ventures related to the hotel business. Shimad highlighted the importance of discontinuing ventures that do not align with the company’s vision. He also revealed that STO is in the final stages of discussions with HDC regarding the hotel’s future.
The decision to withdraw from the hotel business reflects STO’s strategic focus on aligning its operations with its core vision and priorities. The ongoing discussions with HDC will determine the next steps for the hotel property in Hulhumale Phase I.
