Manhattan Grand Hotel opens in Hulhumalé after years of delays

The Manhattan Grand Hotel officially opened in Hulhumalé on Saturday, 7 November, bringing the long-stalled STO City Hotel project into operation two decades after it was first proposed.

Minister of Finance and Public Enterprises Hassan Zareer inaugurated the 162-room hotel at a ceremony in Hulhumalé Phase 1, followed by a fireworks display.

Developed to five-star standards, the hotel is located about seven kilometres from Velana International Airport. It has four dining venues, a swimming pool, a gym and a spa. Bookings are open for conferences and private functions, with facilities including a 1,100-square-metre banquet venue, two terrace halls and smaller meeting rooms.

World of Business Pvt Ltd developed and operates the hotel, with investment from UAE-based Deep Seafood Company. The operator expects 12 airlines to sign agreements with the property.

The State Trading Organization (STO) approved plans for a city hotel in 2006 to generate foreign currency revenue. In 2008, it signed a management agreement with US-based Carlson Group for a planned 250-room Radisson hotel. Construction later stalled, and a 2020 agreement between STO and the Housing Development Corporation (HDC) failed to bring the project to completion.

HDC signed an agreement with World of Business in August 2025 to complete and operate the hotel. Under a separate settlement valued at US$20 million, or about MVR 308 million, STO transferred the original hotel site to HDC in exchange for land in Hulhumalé Phase 2.