DIP launches Hospitality Investment Fund; first investment to be a 60 room city hotel in Maafushi

Dhivehi Investment Partners (DIP) on Thursday launched its new Hospitality Investment Fund. The first investment under the fund will be a 60-room city hotel to be developed in K. Maafushi.

DIP’s new hospitality fund was launched at the Maldives Monetary Authority’s Financial Expo this week. The company said the fund marks an important milestone in its efforts to expand investment opportunities for Maldivian investors.

The fund is designed to give investors the opportunity to participate in equity investments in the Maldives’ tourism sector through a share-ownership model.

Unlike conventional real estate ownership, the fund will allow investors to participate in hospitality assets with smaller capital requirements, while benefiting from returns generated through professionally managed investments, DIP said.

Investors will have the opportunity to earn profits in US dollars and Maldivian rufiyaa, DIP said, noting that this will enable investors to benefit from foreign-exchange earnings generated by the tourism industry.

The first investment under the new hospitality fund will be a 60-room city hotel in Maafushi, one of the most popular islands in the country’s local tourism market.

DIP said Maafushi was chosen as the first investment destination due to its sustained tourism growth, consistently high occupancy levels, and strong performance as one of the Maldives’ most thriving local island tourism markets.

In addition to the Maafushi city hotel, DIP said it has identified future hospitality investments in various parts of the Maldives.

The hospitality fund is a new investment category added to DIP’s existing private investment products.

While DIP’s Dhivehi Investment Nafaa Fund (DHINAF) is structured to provide defined returns through short-term private investments, the Hospitality Fund is designed to enable investors to participate directly in the long-term growth and value creation of hospitality assets, according to DIP.

The fund was introduced following strong market response to DHINAF, DIP said. The company recently launched the DHINAF-48 series with a target of raising MVR 40 million, following the completion of the first MVR 20 million series issued under the fund.

In addition to investment funds, DIP provides brokerage services and facilitates secondary-market opportunities in the country’s capital market, helping to further enhance the investment environment for Maldivian investors.

Visitors to DIP’s stand at the Financial Expo, open from 3pm to 10pm throughout the weekend, will have the opportunity to learn more about the two investment funds, explore share-trading opportunities, and meet directly with the company’s investment professionals.

During the exhibition, visitors will also be able to participate in promotional giveaways, including gift vouchers and a lucky draw for two free nights at Araaik, a boutique guesthouse in H.A. Hoarafushi.