In Addu Investment Pvt Ltd, the operating business for the Shangri-La Villingili Resort, the Maldivian government recently concluded the sale of its 30% ownership part. This action comes after the resort was shut down in the wake of the Covid-19 pandemic's arrival in 2020.
Due to the pandemic, the 2009-opened Shangri-La Villingili Resort stopped operating, and it has been dormant ever since. Economic repercussions of this extended closure included job losses in the Addu region and a drop in tourists in the southernmost atoll.
Minister Mausoom stressed that the reopening of the resort will be made easier by the sale of the government's stake. He also reaffirmed the government's dedication to assisting this process, which includes securing the required approvals. The resort's general manager, Brice Lunot, expressed hope about how to take advantage of the government's intention to revitalize it and about looking into possible collaborations to hasten its reopening.
Through changes to parliamentary rules, the government was able to sell its ownership of Shangri-La for USD 80 million. Minister Mausoom admitted that the accompanying costs and the assessed value of the total investment were crucial factors in coming to this determination, even if he did not disclose detailed insights into the share transfer process.
The resort's owner, Addu Investments Pvt Ltd, retains a majority ownership stake of 70%, which is unchanged. CBRE Group, a US investment company, was hired by Addu Investments earlier in the year to help sell the resort. However, it's unclear what the present state of this sales initiative is.
The Shangri-La Villingili Resort, which is located within the Addu Atoll, came into being in 2009 as a result of cooperation between the Maldivian government and the Shangri-La Group. The resort covers a surface area of 50.6 hectares and offers 284 beds in total for lodging.