Manhattan Grand Hotel Opens in Hulhumalé After Extended Development

The Manhattan Grand Hotel, a long-delayed hotel development in Hulhumalé, officially opened last night, with Finance and Public Enterprises Minister Hassan Zareer inaugurating the property.

Developed and operated by World Business Private Limited, the hotel has 162 rooms and facilities including a banquet hall, multipurpose hall, conference halls, swimming pool, gym, spa and four international food and beverage outlets.

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The hotel is designed to accommodate conferences, exhibitions and other large-scale events, targeting government institutions, state-owned enterprises, private companies and international event organisers.

The company had opened bookings for conferences, exhibitions and other events ahead of the hotel’s scheduled completion in November. Chief Operating Officer Fahiyeas Pangath said the hotel aims to provide facilities capable of hosting large-scale international events in the Maldives.

Under its agreement with the Housing Development Corporation (HDC), the company will pay USD 11 million as the property’s value and USD 935,000 in annual rent. The project is also expected to generate approximately USD 2.5 million in annual tax revenue for the state. 

As part of its corporate social responsibility commitments, World Business Private Limited is also responsible for permanently covering electricity, water and maintenance costs for the Youth Centre, Media Village, Medical College and Heritage College facilities, which were established at a cost of USD 7 million in the building. 

The hotel is expected to serve as a major city accommodation facility linked to the new terminal at Velana International Airport. According to the company, 12 airlines are expected to sign agreements with the hotel.  

The delay in completing the Manhattan Grand Hotel dates back to the original City Hotel project, which the State Trading Organisation (STO) initiated in Hulhumalé. 

STO signed an agreement with the US-based Carlson Hotel Group in 2008, and construction began in 2011. The 250-room hotel was initially expected to open in 2013, but the project encountered repeated setbacks and remained unfinished despite substantial investment. STO subsequently made several attempts to sell the property, but these efforts failed to bring the development to completion. The company also faced concerns from shareholders over the prolonged delay and cost overruns.

In June 2023, the Housing Development Corporation (HDC) took over the project from STO through a settlement agreement. The property was subsequently handed over to World of Business Pvt Ltd in 2025 for redevelopment as a hotel alongside government facilities, including a Media Village, youth centre, heritage college and medical college.