STO Withdraws from Hotel Business in Hulhumale Phase I

The State Trading Organization (STO) has announced its decision to exit from the hotel business in Hulhumale Phase I.

STO originally acquired land in the area in 2007 with plans to develop a hotel. In 2011, a partnership with the US-based Carlson Group was formed to establish a 250-room hotel branded as ‘Radisson Blu’. Despite initial plans, the project faced setbacks, and in 2018, STO attempted unsuccessfully to sell the property. 

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Subsequently, STO entered into an agreement with the Housing Development Corporation (HDC) to jointly manage the hotel. In 2021, HDC publicly sought proposals from potential operators for the hotel.

During STO’s annual general meeting, Managing Director Ibrahim Shimad announced the company’s decision to discontinue its involvement in the hotel sector. 

Shimad stressed the importance of aligning business activities with the company’s strategic vision. Discussions regarding the future of the hotel with HDC are reportedly in their final stages.

The move marks a strategic shift for STO as it seeks to focus its resources on areas more closely aligned with its corporate objectives.