The Managing Director of State Trading Organization (STO), Abdulla Saeed said that Urbanco will allocate two plots in Hulhumalé in exchange for the company's delayed hotel project.
During the company’s recently held Annual General Meeting, Saeed said that a settlement agreement has been reached between STO and Urbanco regarding the hotel project.
"In the [settlement] agreement, Urbanco has proposed plots from Hulhumalé as compensation for our investment, and both parties have already agreed to this proposal," Saeed said.
As Urbanco has not yet provided the land issuance documentation to STO, the formal handover of the hotel to Urbanco has not taken place. Saeed also said that Urbanco plans to contract a foreign party to manage the hotel.
STO initiated the development project of the city hotel in Hulhumalé in 2008 in collaboration with the US-based Carlson Hotel Group. Physical work of the city hotel project began in 2012. However, despite MVR 115 million spent on the hotel's development, the project came to a halt afterwards.
The city hotel comprises of 250 multicategory rooms, as well as restaurants, an event hall, and a shopping zone.
While the project stalled because of a dispute with a contractor, STO has been seeking a company to manage the property for the past 10 years. After it failed to seek a hotel management company, STO had decided to seek Urbanco’s assistance to contract a party to run the property.
According to STO, the city hotel project is nearing completion, with only the finishing works remaining. All structural works have been successfully completed, and the site is currently being utilized by STO for temporary goods storage.