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.

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