STO given 40,000 square feet land in return for Hulhumale' hotel

May 18, 2025, 10:06 AM
City hotel built by STO. -- Photo: HDC

City hotel built by STO. -- Photo: HDC

The State Trading Organization (STO) has announced that a 40,000 square feet land plot has been allocated for the company in Hulhumale' Phase 3.

This land was arranged to replace the city hotel project by STO. The company completed the majority of the project works before it halted.

At the annual general meeting on Saturday night, STO Managing Director Shimad Ibrahim said the land has been arranged. He said work was ongoing to register the land under the company.

But he did not say whether the land was allocated in the already reclaimed area or an area yet to be reclaimed in Hulhumale' Phase 3.

STO city hotel project was started in 2006 by the company's board to raise dollars. Under this decision, the company started construction of a 250-room five-star hotel in 2011 in collaboration with the Carlson Group of the United States. It was named Radisson Hulhumale' Maldives.

But the project halted and STO tried to sell the property on several occasions. The company had invested heavily in the property and was facing losses due to the project suspension.

The Housing Development Corporation (HDC) later decided to take over the property. HDC has recently handed over the property to World of Business Pvt Ltd. It is affiliated with a shareholder of the Manhattan Business Hotel.

The HDC said the company was created specifically for that purpose. In addition to the hotel, three floors have been allocated for government use, including the Media Village.

Comments

Read More

Latest News

Economic growth could be below one percent

The Maldives' economic growth forecast has been slashed to between 0.6% and 1.8% due to Middle East conflicts disrupting tourism. Finance Minister Hassan Zareer noted that travel route closures and rising fuel costs have caused a sharp decline in arrivals. The government now expects 2.17 million visitors, a 3.5% drop from last year.

Tourist arrivals expected to fall short of previous record

Maldives Finance Minister Hassan Zareer announced that tourist arrivals this year are expected to fall short of previous records and targets. The government revised its year-end estimate to 2.17 million visitors, citing geopolitical tensions as a factor. This decline marks the end of a five-year growth trend for the nation's tourism sector.

Maldivian flight with pilgrims abruptly postponed

A Maldivian flight carrying 250 Umrah pilgrims was postponed due to escalating regional tensions and airspace restrictions near Jeddah. Island Aviation delayed the trip to prioritize passenger safety amid deteriorating conditions in the Middle East. The airline and Hajj Corporation are working to assist affected travelers.

Villa College opens January 2027 intake with over 100 programs

Villa College has opened applications for its January 2027 intake, offering over 100 programs from certificates to master’s degrees. Students can apply until December 26, 2026, for courses in fields like IT, law, and nursing. The college provides international-standard education through partnerships with top UK and Malaysian universities.

Efforts underway to relocate Male' Port to Thilafushi

Maldives Ports Limited has begun relocating Malé’s commercial port operations to Thilafushi, starting with sea-based container clearance. The move aims to reduce congestion at the Malé and Hulhumalé terminals. While China Harbour Engineering Company handles design, local firm MTCC is constructing the new port's quay wall.

CBM re-auctions Malé land plots following loan repayment defaults

The Commercial Bank of Maldives is re-auctioning two land plots in Malé after the owner defaulted on loan repayments. The properties, Maafannu Doragali 2 and 3, have a combined reserve price of MVR 3.8 million. Interested bidders must submit their offers by November 1 with a mandatory bid security of MVR 25,000.

Turkish firm ordered to pay MVR 25 million in unpaid taxes

The Maldives High Court ordered Turkish firm Turmaks to pay MVR 25 million in unpaid GST for materials used to build Tree Top Hospital. The court upheld MIRA's assessment, rejecting the company's claim that a verbal agreement shifted tax liability. The ruling emphasizes that the burden of proof for tax exemptions lies with the taxpayer.

Newsletter

Get the latest news delivered straight to your inbox