STO withdraws from Hulhumale’ hotel business

The State Trading Organization (STO) has decided to withdraw from its hotel business in Hulhumale Phase I.

In 2007, STO acquired land from Hulhumale Phase I to develop a hotel. Later in 2011, STO teamed with US-based Carlson Group to develop a 250-room hotel, ‘Radisson Blu’, at the property. However, the project did not advance as planned, and in 2018, STO attempted to sell the hotel. Despite multiple efforts, the sale did not materialize, leading STO to enter an agreement with the Housing Development Corporation (HDC) to jointly operate the hotel. In 2021, HDC made announcements seeking a group to run the hotel.

At STO’s annual general meeting held Friday, Managing Director Ibrahim Shimad announced that STO was no longer interested in business related to the hotel. Shimad emphasized the importance of discontinuing ventures that do not align with the company’s vision. He also disclosed that the final stages of discussion are ongoing with the Housing Development Corporation (HDC) regarding the future of the hotel.