S Hotels & Resorts reaps US$16.2 million by selling 50% stake to EWD to develop high-end resort in the Maldives

S Hotels & Resorts reaps US$16.2 million by selling 50% stake to EWD to develop high-end resort in the Maldives

S Hotels & Resorts (SHR) has received US$16.2 million from the sale of its 50% stake in Prime Locations Management 3 Ltd., the operator of a high-end lifestyle resort on Island 3 in the CROSSROADS Maldives, to Wai Eco World Developer Pte (EWD).

SHR’s subsidiary S Hotels and Resorts (SC) Co., Ltd. (SHR SC) previously held a 100% stake in Prime Locations Management 3 (Prime Locations). It completed the sale of a 50% stake in Prime Locations to EWD on 19 February 2020. 

Mr. Chairath Sivapornpan, Chief Financial Officer of SHR, said having EWD as its business partner will enhance the company’s financial and operational strengths. SHR is confident the resort on Island 3 in CROSSROADS will be successful and start its commercial operations on schedule.

Under the joint-venture agreement between SHR and EWD, Prime Locations Management 3 has a wholly owned subsidiary, Dream Islands Development 3 Private Limited, to enter into a Sublease Agreement with Dream Islands Development 2 Private Limited (DID2) to obtain the sublease rights of Island 3 in the CROSSROADS. DID2 has a Head Lease Agreement with the Maldivian government.

In late 2019, SHR announced its joint venture with EWD, a business conglomerate from Myanmar which has various business interests in property development, mining, automotive and food, to develop a high-end lifestyle resort worth US$60 million on Island 3 in the CROSSROADS.

The new resort will host 80 spacious villas at a price point of $900-$1,000 per night. The new development will diversify SHR’s portfolio in the Maldives. Construction is expected to start this year and be completed in 2022.

“The new high-end lifestyle resort on Island 3 will be a new choice for visitors, allowing CROSSROADS to extend and diversify its experiential offerings to the market,” said Mr. Chairath.

SHR currently has two lifestyle resorts, SAii Lagoon Maldives, Curio Collection by Hilton on Island 1 and Hard Rock Hotel Maldives on Island 2. It also owns The Marina @CROSSROADS, a recreation and entertainment centre comprising a luxurious 30-berth yacht marina, beach club, restaurants, retail shops, multipurpose event hall and various leisure activities. The CROSSROADS is located just 15 minutes from Male International Airport. 

Do you like the content of this article?
COMMENT