Urbanco to give 2 plots as compensation for stalled STO hotel
The hotel, which was started by STO in 2011, is yet to be completed and STO’s attempts to sell it have not been successful.
Urbanco has agreed to give two plots of land to STO from Hulhumale as compensation for taking over the stalled city hotel building owned by STO.
Responding to a question from a general shareholder at STO's 2022 Annual General Meeting held at Hulhumale Central Park Wednesday evening, STO Managing Director Abdulla Saeed said Urbanco and STO had entered into a settlement agreement over the stalled hotel project.
Saeed said both the companies had signed the settlement agreement, under which Urbanco had decided to give two land plots to STO in lieu of STO's investment in the city hotel.
"Both sides have agreed on this as well. However, we are still in the process of signing the land handover agreement. Since it is not yet complete, we haven't handed over the hotel l to Urbanco," Saeed said, noting that Urbanco is planning to sell the hotel.
The hotel, which was started by STO in 2011, is yet to be completed and STO’s attempts to sell it have not been successful.
City Hotel Project
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On July 31, 2007, STO signed an agreement with HDC to acquire land in Hulhumale Phase I to develop a hotel
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It will be developed on a five-star basis with 250 rooms; it will be run under the Radisson brand of Carlson Group
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US-based Carlson Group signed a management agreement on the hotel on May 14, 2008; but the project slowed down and the deal was scrapped as well
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Construction work began in 2012
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The same year, a USD 32 million loan was taken from Thailand's Exim Bank to complete the project
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In 2014, the project came to a grinding halt after a government directive
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Signed an agreement with HDC on July 22, 2020 to develop the hotel
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On January 26, 2021, it was first announced that it would hire people to buy the hotel through HDC
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Though a major portion of the project has been completed, STO continues to use it as a warehouse.
