The State Trading Organization (STO) is set to receive at least 40,000 square feet of land in Hulhumalé Phase 3 in exchange for the long-stalled City Hotel project.

The development was announced by STO Managing Director Shimad Ibrahim during the company’s Annual General Meeting (AGM).

According to Shimad, STO has received formal notification from the Housing Development Corporation (HDC) confirming the allocation of land to replace the hotel structure, which has remained unfinished for more than a decade. He stated that legal procedures related to the land transfer are currently underway.

The City Hotel project, first launched in 2011, has drawn repeated questions from shareholders at past AGMs. Despite multiple efforts, STO has been unable to sell or complete the property. With the transfer now confirmed, STO has signed a Memorandum of Understanding (MoU) with World of Business Private Limited to hand over management of the building.

World of Business, a specially established company, will operate the facility under the name Manhattan Grand Hotel, with 50 per cent foreign investment. The UAE-based Deep Seafood Company will serve as the project’s investment partner.

As part of the redevelopment plan, the building will include a media village, a youth centre focused on e-sports, a heritage college, and a medical college. Certain sections of the property will also be designated for Government use. These facilities are expected to be completed and handed over within four months of commencement of work.

The hotel component of the project will feature 158 rooms built to five-star standards, with operations scheduled to begin within nine months from the start of practical work. According to STO, the redevelopment aligns with President Dr Mohamed Muizzu’s pledge to develop a high-quality transit hotel in Hulhumalé, offering modern amenities and services to international visitors.