STO granted 40,000 square feet of land in exchange for City Hotel project

State Trading Organisation (STO) has been allocated 40,000 square feet of land in Hulhumale' in exchange for the long-abandoned City Hotel project, STO Managing Director Shimad Ibrahim announced at the company’s Annual General Meeting last night.

Shimad said that the land has been officially handed over by the Housing Development Corporation (HDC).

“We have vacated the building, and its value has been assessed through an agreement with HDC. In exchange, we have acquired land in Hulhumale'. The letter confirming the land allocation has been received,” he said.

The City Hotel project began in 2008 under a partnership with the US-based Carlson Hotel Group. Construction commenced in 2012 and cost approximately MVR 115 million. However, work was halted midway, and despite several attempts over the past decade to revive or lease the project, STO eventually abandoned the site.

Earlier this year, HDC signed a Memorandum of Understanding to complete the unfinished building and hand over its operations to World of Business Pvt Ltd.

The structure is expected to be developed including hotel accommodations and office spaces for government purposes.