COLOMBO October 14, 2007 (LBO) — Leisure operator, Shangri-La has been seltected to build a five-star city hotel in the Maldivian capital of Male, a senior minister said Sunday. . Shangri-La Maldives, which is currently building a 400-bed resort in the northern atoll of Villingili, is expected to complete the 200-bed city hotel by 2010, Tourism Minister Mahamood Shougee said.
Shangri-La, a Hong Kong based leisure group, was one of the two parties who sent in bids to build Male’s first city five-star property in Dharubaaruge.
However, Handy Hard Investment Ltd, who initially won the bid, declined the offer and the government then awarded the contract to Shangri-La.
Shangri-La is now required to deposit five million dollars within seven days.
Male, which measures one square mile (2.5 square kilometres), has over a dozen guest houses and small hotels but no five-star property.
Under the terms of agreement, Shangri-La must also sell a 30 percent stake in the new venture through a stock market flotation within three years of signing the contract.
Shougee said the new hotel would be a replacement for Male’s Nasandhura Palace Hotel, which is owned by th