The Housing Development Corporation (HDC) has signed an agreement with World of Business Pvt Ltd to redevelop the long-abandoned STO City Hotel site in Hulhumalé into a five-star luxury property.

The agreement was formalised between HDC Managing Director Ali Zuhair and World of Business Chief Executive Officer Fahiyas Pangatt on 20 August. World of Business is a joint venture with Dubai’s Deep Sea Company.

Under the deal, the building idle since 2007 in Hulhumalé Phase 1, will be transformed into the Manhattan Grand Hotel. The 158-room facility will feature a banquet hall, multipurpose and conference halls, a swimming pool, gym, spa and four international food and beverage outlets. The hotel will also be directly connected to Velana International Airport’s new terminal, with twelve airlines expected to sign service agreements.

The property is also expected to include space dedicated to Government projects pledged by President Dr Mohamed Muizzu, including a Media Village, Qaumiyathu Institute, MNU Medical College and a Youth Centre. These facilities, worth USD 7 million, are expected to be completed and handed over to the Government within five months.

HDC will receive USD 11 million as the property’s value and MVR 14.4 million annually in rent, while the state will also gain USD 2.5 million in taxes. World of Business Pvt Ltd has also committed to permanently cover the utility and maintenance costs of the Government facilities under its corporate social responsibility programme. The project is estimated to be completed within the next 12 months.