The final discussions regarding the sale of State Trading Organization (STO)'s hotel in development at reclaimed suburb Hulhumale' are ongoing.
According to the financial statements of the final quarter of 2019 publicized by the public company, discussions are ongoing with potential buyers and are in its final stages.
The company said its assets and profit mentioned in the financial statement are likely to change based on the price for which the hotel is sold. The company is also in discussion with the government to waive taxes and dividend payable to the state during the period of the sale, in order to minimize losses.
Five companies have expressed interest in purchasing the hotel, including companies from Malaysia, Sri Lanka, China and India. The names of the companies were not disclosed.
STO started the hotel development project in 2011 in collaboration with an American company. However, after multiple delays in construction and numerous extensions, the company reached the decision to sell the hotel in 2018.
During the fourth quarter of 2018, STO generated a revenue of MVR 2.35 billion, and a net profit of MVR 82 million.
