After years of delays and shifting partnerships, the long-stalled Hulhumale’ City Hotel project is finally set to be completed under a new developer. The Housing Development Corporation (HDC) has signed a Memorandum of Understanding (MoU) with World of Business Pvt Ltd to redevelop and operate the hotel, originally initiated by the State Trading Organisation (STO) in 2007.
The project, located in Hulhumale’ Phase I, has faced repeated setbacks since construction began in 2012. Initially launched through a partnership between STO and the Carlson Group, the development quickly ran into challenges and was brought to a halt in 2014 following a government directive. Though a revival attempt was made in 2020 with HDC signing on to continue the development with STO, progress remained elusive.
At STO’s Annual General Meeting held that same year, then-Managing Director Hussain Amr confirmed that the investor initially tapped to finance the project had withdrawn, prompting the company to seek support from HDC.
A renewed commitment to complete the City Hotel came in July 2024, when President Dr Mohamed Muizzu publicly announced that the government had taken over the unfinished project. Speaking at an Independence Day event, the President pledged that part of the building would serve as a media village with set pricing guidelines, reflecting a shift towards public utility.
Now, as of 2 May 2025, HDC has formally confirmed that World of Business Pvt Ltd will lead the redevelopment of the building. The agency also revealed that a settlement agreement has been reached with STO, though details remain undisclosed.
According to HDC, the revived development will combine commercial and government use. A portion of 3.5 floors will be dedicated to government facilities, including a media village, a youth centre focused on e-sports, a heritage collection, and a medical college. The remainder of the building will house a five-star city hotel comprising 158 rooms.
The timeline for completion is notably ambitious. HDC stated that the government-use section will be ready within four months, while the hotel itself is expected to be fully operational in nine months. If this schedule holds, it would mark the completion of a 14-year journey to bring the City Hotel to life—culminating in 2026.
