The State Trading Organisation (STO) has transferred the city hotel project it was developing in Hulhumalé to the Housing Development Corporation (HDC) in exchange for a plot of land in Hulhumalé Phase 2. The agreement, valued at USD 20 million (approximately MVR 308 million), was signed on Sunday, according to a gazetted notice.
Earlier this year, STO announced at its annual general meeting that it would provide land in Hulhumalé under a settlement agreement in place of the land designated for the hotel project. At the time, the land was expected to be allocated in Phase 3. However, the agreement was finalised for a plot in Phase 2.
In May, HDC handed over the management of the hotel to a private company established for that purpose. The construction, which includes a section of offices reserved for government use, was contracted to The World of Business Pvt Ltd. HDC stated then that the project would commence after the settlement agreement with STO was concluded.
Plans for the government-designated section (3.5 floor space) include a media village, an e-sports youth centre, a heritage college, and a medical college, which are scheduled for completion within four months of commencement. The remainder of the property will feature 158 five-star hotel rooms, expected to become operational within nine months.
The city hotel project has faced repeated delays since its inception. STO initially signed an agreement with the US-based Carlson Hotel Group in 2008, with construction beginning in 2012. The hotel, originally planned to open under the Hilton brand Radisson Blu by 2013, encountered setbacks and was eventually sold in 2016. The project has since drawn concern from shareholders due to its prolonged delays and cost overruns.
