STO receives 40,000 sq ft Hulhumale' plot in exchange for stalled City Hotel investment

STO has been allocated 40,000 square feet of land in Hulhumale' in exchange for its USD 20 million investment in the stalled City Hotel project.

STO said last year that it had signed agreements to receive 40,000 square feet of land as compensation for the abandoned hotel project. The company had begun construction in Hulhumale' but work had been halted for a long period.

The case concluded on Wednesday, with the Civil Court issuing its judgment. The ruling was delivered by Judge Zulaikha Sheeza.

STO’s City Hotel project was initiated in 2006 by the company’s board as part of efforts to increase dollar revenue. Under that decision, STO began developing a 250‑room, five‑star hotel in 2011 in partnership with the Carlson Group of the United States.

Since then, STO has attempted several times to sell the property. The company had invested heavily in the project but had not generated any income from it for years.

STO had previously worked with the Housing Development Corporation (HDC) to develop the hotel. However, the project faced repeated delays for various reasons. While most of the hotel’s structure has been completed, construction has remained stalled for many years.