The State Trading Organisation (STO) has transferred its Hulhumalé city hotel project to the Housing Development Corporation (HDC) in exchange for a prime plot of land in Hulhumalé Phase 2. The deal, finalized on Sunday and valued at USD 20 million (approximately MVR 308 million), concludes a long-standing agreement and paves the way for the project’s completion.
The transfer follows an announcement made earlier this year at STO’s annual general meeting. While initially slated for a Phase 3 location, the final agreement designated a plot in Phase 2 for the STO land exchange. This strategic land swap resolves a significant hurdle in the hotel’s development timeline.
In May, the Housing Development Corporation (HDC) entrusted the hotel’s management to a newly established private company. Construction, which includes a dedicated government office section, was awarded to The World of Business Pvt Ltd. The commencement of construction was contingent upon the finalization of the settlement agreement with STO, a condition now fulfilled.
The government-designated portion of the building, encompassing 3.5 floors, will house a comprehensive range of facilities. These include a state-of-the-art media village, a dedicated e-sports youth center, a heritage college, and a medical college. The ambitious plan anticipates completion of these facilities within four months of the project’s commencement.
The remaining floors will accommodate a 158-room five-star hotel, projected to open within nine months of construction’s start. This significant addition to Hulhumalé’s hospitality sector is expected to boost tourism and economic activity in the area. The hotel’s upscale amenities and prime location are anticipated to attract a significant number of visitors.
The Hulhumalé city hotel project has faced considerable delays since its inception. Initially, STO partnered with the US-based Carlson Hotel Group in 2008, with construction commencing in 2012. Originally envisioned as a Hilton Radisson Blu, the project encountered substantial setbacks, leading to its sale in 2016. These delays and associated cost overruns have previously raised concerns among shareholders.
The transfer to HDC marks a significant turning point for the project. With the land exchange finalized and construction underway, the completion of this long-awaited development is now within reach, promising a substantial boost to Hulhumalé’s infrastructure and tourism sector. The diverse range of facilities planned for the government section will also contribute significantly to the community’s educational and social development.
