The State Trading Organization (STO) has officially transferred its city hotel project in Hulhumalé to the Housing Development Corporation (HDC), confirming a land conversion deal valued at USD 20 million.
The agreement was signed on Sunday, paving the way for the long-stalled project to be completed as the new Manhattan Grand hotel.
According to a press statement issued by STO, the deal involves STO handing over the original hotel site in Hulhumalé Phase 1 in exchange for a plot of land in Phase 2. The specifics of the land swap will be included in the company's 2025 financial statements, in compliance with the Capital Market Development Authority's Continuous Disclosure Obligations.
The ambitious new development is central to President Dr Mohamed Muizzu’s strategic vision for the country. The President has committed to completing several government-purpose facilities within five months, which will be housed in the new hotel complex.
The project will be managed by World of Business Pvt Ltd, a company that has partnered with Dubai's Deep Seafood Company.
The completed hotel will be connected to the new terminal of Velana International Airport (VIA) and is expected to be finished within 12 months.
The Manhattan Grand once complete will feature 158 rooms, a banquet hall, a multi-purpose hall, conference halls, a swimming pool, gym, and spa along with four international food and beverage brands.
In addition to the hotel facilities, the complex will include a dedicated area for President Muizzu's key pledges, including a media village, youth centre focused on e-sports, a medical college and a heritage college.
HDC reported that a dozen airlines have already signed service agreements with the hotel, anticipating strong demand for the new transit-oriented property.
The STO hotel project has a long history of delays, with construction initially starting almost two decades ago. The transfer to HDC and subsequent awarding to a private developer mark a crucial step in revitalising the site and turning it into a productive asset for the nation.