Premier 55-Room Resort Property in Negombo, Sri Lanka
10km from International Airport, walking distance to beach, 300ft lagoon frontage
5 acres - the largest hotel property in Negombo with expansion potential
Longest pool complex in Colombo region, dual waterfront access
| Metric | Current | Market Average |
|---|---|---|
| Monthly Revenue | $100K - $150K | $180K - $200K |
| Annual Revenue | $1.2M - $1.8M | $2.2M - $2.4M |
| RevPAR | $65 - $98 | $100 - $120 |
| Improvement Potential | 30-50% revenue upside | |
| Metric | At Negotiated Price | Market Comp |
|---|---|---|
| Asking Price | $9,000,000 | - |
| Negotiated Price | $7,000,000 | 22% Discount |
| Price/Room | $127,273 | $180,000+ |
| Revenue Multiple | 3.9x - 5.8x | 6x - 8x |
| Price/Acre | $1.4M | $1.8M - $2.2M |
| Total Discount | $2M saved + 35% below market | |
IRR: 12%
Equity Multiple: 1.4x
Cash Yield: 5-7%
IRR: 23%
Equity Multiple: 2.2x
Cash Yield: 8-10%
IRR: 32%
Equity Multiple: 2.8x
Cash Yield: 12-15%
Competition
Regulatory Changes
Tourism Volatility
Operating Challenges
Currency (USD Revenue)
Market Recovery (Growing)
| Asking Price | $9,000,000 |
| Negotiated Price | $7,000,000 |
| Savings Achieved | $2,000,000 (22%) |
| Equity (40%) | $2.8M |
| Debt (60%) | $4.2M @ 8-10% |
| Closing Timeline | 60-90 days |
| Financial Audit | ✓ 3-year historicals |
| Legal Review | ✓ Title & licenses |
| Physical Inspection | ✓ Property condition |
| Market Study | ✓ Competition analysis |
Arie Lagoon Hotel at $7M negotiated price (down from $9M asking) represents exceptional value with $2M immediate savings, 35-40% discount to market, and clear path to achieve 23-28% IRR over 5 years.
SECURE DEAL AT $7.0M
Investment Advisory | November 2025
Confidential - For Discussion Purposes Only