Authorities have begun preparations to commence the development of a city hotel in Manadhoo, Noonu Atoll.
The agreement to develop a city hotel in Manadhoo was signed between the Ministry of Tourism and Stone Hotels Maldives Private Limited in September 2021. The scope of the project includes the development of a 50-room city hotel on a land area of 132,000sqft within 30 months.
Stone Hotels Maldives paid an acquisition cost of USD413,000 but the project is yet to begin due to the failure to allocate a land plot and the difficulties in holding discussions with the Manadhoo Island Council. The authorities have now decided to develop the city hotel away from the residential area after the ministry transferred its powers under the agreement to the council. The council is currently in the process of leasing the land plot for a 50-year period with a price of USD4 per square foot.
Speaking to PSM News, President of Manadhoo Island Council Abdul Rahman Sabeeh said the residents have been anticipating the development of the city hotel since 2010 as it is linked to the developmental prospects of the island. He noted that Noonu Atoll has many luxury resorts but they do not contribute to the revenue generation of the islands. As such, he said that the development of the city hotel will increase revenue and job opportunities.
Manadhoo is a relatively large island of 119 hectares. The council stated that the Land Use Plan of the island has allocated about 20 land plots for tourism-related activities. Currently, three guesthouses are operating on the island.