State Trading Organization’s (STO) Managing Director Amr Mohamed Rashad, on Thursday, revealed that the city hotel developed by the company in Hulhumale’ presently belongs to Housing Development Corporation (HDC) and not the company.
Speaking to Sun, Amr said that STO leased the land plot in 2007, while an agreement has been now been reached on the issue.
“The agreement we came to with HDC is for them to find us a buyer, to sell the place. To reimburse the money we invested. They are going forward with these matters,” he detailed.
Amr said that HDC has remained consistent in compensating STO for its losses.
“So, in other words, it is not our hotel, but HDC’s,” he stressed.
Amr said that some items belonging to STO Paints were stored at the premise until recently as the building has not been completely handed over to HDC. However, he added that STO will completely vacate the premise very soon.
STO began the development of the city hotel in 2007. Efforts to develop the city hotel, with 250 rooms, as ‘Radisson Blu’ commenced in 2011.
These efforts were stalled following which STO initiated efforts to sell the building in 2018. HDC, last year, announced their decision to repossess the building for other purposes if the city hotel goes without operation for a lengthy period of time.