Historically, arms-length transactions of operating resorts in the Maldives
have been scarce. Investment activity has instead largely gravitated
towards projects on islands that have been tendered out for resort
development by the Ministry of Tourism, Arts and Culture. Given the
constraints associated with such form of investment, interest in these
situations has been typically spearheaded by domestic investors or
foreign groups that have partnered with domestic investors. In turn, these
groups have either progressed with resort island developments under
a direct master lease or they have leased the island to a sub-lessee for
development and/or operation.
Undeterred by short lease periods of 50 years or less, demand for
operating resorts in the Maldives remains high as it avoids the risks and
challenges relating to development projects and provides immediate
representation and cash flow to an incoming investor. As a gateway
luxury resort market, interest in the Maldives is far ranging and includes
owner-operators keen to establish or expand their presence across
the archipelago as well as private investors affiliated with operators or
investors that are attracted by the opportunity to own a luxury resort in the
Maldives