Shangrila Maldives to transfer all rights of plot leased to develop 5 star hotel in Male'

Shangrila Maldives has decided to transfer all their rights of the plot of land on the eastern side of Dharubaaruge, leased to the company for 25 years to develop and manage a 5 star hotel.

The plot was granted to Shangrila Maldives in 2007, who had paid a $5 million dollar advance payment for the investment.

Tourism Minister Ahmed Adheeb said today that the government has decided to sell the land to Crecendas, a Singaporean company who is currently developing a tourist resort in Seenu Hankede in the south of the country.

Minister Adheeb said Shangrila has requested for a permit to transfer all their shares owned under the lease agreement.

Located on the eastern end of the capital city, the bid for the plot of land was proposed by a local company named Male’ Investment Pvt. Ltd.

“Government had signed an agreement with someone else to build a hotel on that plot. The party now wants to sell it someone else, without changing the agreement,” Adheeb said.

Adheeb said that the government is trying to begin development of a hotel on the same plot within the year.

The plot’s lease agreement also agreed to establish a public limited company, of which 30 percent of shares were to he held by the public. The rent-per-bed proposed by Shangrila for the hotel is an average of $5100 per year.

In relation to Shangrila’s request to transfer all rights of the lease agreement, Tourism Ministry has published an announcement seeking any claimants of debts or issues regarding the plot to come forth before the 11th of August 2013.

Shangrila had earlier established a hotel in the capital under their brand Holiday Inn, which was soon rebranded as Traders Hotel. The company also operates a tourist resort in Seenu Vilingili in the south of Maldives.