Controversial lodge now generating revenue

By Joyetter Feagaimaali’i 22 February 2019, 12:00AM

The Samoa Land Corporation-owned Malifa Lodge – which was once described as a failed project –is now collecting $108,000 on an annual basis. 

The lodge recently underwent a rebranding program and was renamed the Tivoli Hotel. The hotel consists of 19 rooms, a laundry room, and an office built and was built by the Diamond Head Construction. The project cost the corporation a total of $2 million. 

The lodge was up for lease in May 2017 with the corporation bringing on board Paul Investment Company as a lessee late last year. An agreement for a 15-year lease was agreed for a monthly rate of $9000. 

Details of the lodge’s transactions were highlighted in a report produced by the Parliamentary Economic Committee. 

“The Committee noted that during its deliberations it highlighted that the Corporations Building namely Malifa Lodge has been leased out to the Paul Investment Company for 15 years with a leasing fee of $9,000 per month. 

The corporation then affirmed that the company’s leasing fee is paid regularly, which is a supporting method to increase its revenues.” 

The lodge was labeled a “failed project” by the Minister for Samoa Shipping Corporation, Papali’i Niko Lee Hang, last year. 

But the Minister of Public Enterprises, Lautafi Selafi Purcell, rubbished the claims.

 “The goal for this project was to give it back to the private sector and that is what is happening, it did not fail. It was not as profitable in the beginning and I want to make it clear that it is not for sale, rather we have leased it to a private company and plus the lodge is located on Samoa Land Corporation property,” Lautafi said.

By Joyetter Feagaimaali’i 22 February 2019, 12:00AM
Samoa Observer

Upgrade to Premium

Subscribe to
Samoa Observer Online

Enjoy access to over a thousand articles per month, on any device.

Ready to signup?