State Trading Organisation (STO) has finalised a deal with Housing Development Corporation (HDC) to convert the City Hotel property in Hulhumalé into Phase II land, valued at USD 20 million (approximately MVR 308 million).

The agreement was signed between STO and HDC on 31 August. STO stated that details of the financial impact of the transaction will be reflected in the company’s financial statements for the current year.

At STO’s annual general meeting earlier this year, it was revealed that the company would settle arrangements by transferring land in Hulhumalé instead of proceeding with the previously planned City Hotel development.

Meanwhile, HDC has handed over the operation of the hotel to World of Business Private Limited.