Beautiful boutique hotel for sale on Sri Lanka’s South Coast

Partner agent page

Aug 14

An almost brand new but already profitable and very well-running boutique hotel in secluded but attractive beachside location on Sri Lanka’s South Coast.

For sale - Guide price USD 1.2m

Land extent - 68 perches (0.42 acres)
Built up area - Tbc
7 guest bedrooms
50 metres from a beautiful secluded beach
Well run F&B operation for in-house and visiting guests
Strong operating model and financials
Reference - 103

Outline

This hotel presents a rare opportunity to acquire a superbly conceived and finished property; the principal asset for a business that is relatively newly set up but already very well-run and profitable.

The 7-bedroom boutique hotel sits a fraction East of Dondra, easily reached but away from the main coast road and just a few metres from a small, gorgeous and hardly visited bay - quintessentially tropical.

The hotel, its brand, operating system and all the infrastructure behind it, are offered in entirety giving a new owner an exceptionally easy transition to a strong income-generating asset.

Originally from Australia, the family owners of the hotel had spent many years developing hospitality projects in South East Asia before exploring Sri Lanka, discovering and acquiring the plot of land for the hotel in 2018.
The various ‘challenges’ the island - and, in some cases, the world - faced from early 2019-2022 meant that development was gentle and relatively slow-paced. That, in the long run, has been no bad thing, giving them time to leverage the experience they’ve had elsewhere - most notably in design and construction - to achieve a look, feel and overall guest experience second-to-none.
Though emotionally, as well as financially, invested in the hotel, changing family dynamics have meant they need to spend more time in Australia and prefer to see it in the hands of owners able and willing to give it sufficient focus.
The property operates as a traditional boutique hotel with a good room inventory (7) completed to a high standard and achieving a good average daily rate (ADR) of approximately USD 190.
In addition, its size, style and location lend to exclusive buy-outs - for yoga, surfing, or other group activities.
There’s ample scope - and there’d surely be good demand - for new owners to lease the property to surf camp or yoga retreat operators, locking in a guaranteed income should they wish.
Much time, effort, and expense has gone into developing the cafe, restaurant and the F&B offering they provide. That revenue stream is secondary to rooms but significant with the hotel catering well to outside guests as well as residents.
At the very Southern tip of Sri Lanka - quietly away from the Coast Road but easily reached, adjacent a small beautiful bay.
The owners would, in 2018, have been forgiven for looking at more established locations like Ahangama or Hiriketiya but they took a bet on demand for something a bit different and it has paid off.
The coast road just after Dondra moves a little inland and so this small stretch feels quiet, secluded and untouched. It is exceptionally beautiful, even by the high standards of this part of the island.
The Southern Expressway brings Colombo and the Inernational Airport comfortably within 3 hours drive. It also makes day trips to hubs like Galle, and even to safari hotspots of Yala and Udawalawe perfectly manageable and attractive to guests.