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

Under the deal, the building, which has remained idle since 2007 in Hulhumalé Phase 1, will be transformed into the Manhattan Grand Hotel. The 158-room hotel will include a banquet hall, multipurpose and conference halls, a swimming pool, gym, spa, and four international restaurants. It will also have direct connectivity to Velana International Airport’s new terminal, with twelve airlines expected to sign service agreements.

In addition to the hotel, the property will house government projects pledged by President Dr Mohamed Muizzu, including a Media Village, Qaumiyathu Institute, MNU Medical College, and a Youth Centre. Valued at USD 7 million, these facilities 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, along with MVR 14.4 million annually in rent, while the state will also gain USD 2.5 million in taxes. World of Business has further committed to covering utility and maintenance costs of the government facilities under its corporate social responsibility programme.

The redevelopment project is expected to be completed within the next 12 months.