Page 18 - Invest in Sri Lanka

Sri Lanka: The Heart of the Eastern Hemisphere Your Destination for Timeless, Sustainable Investments

Hotel Performance According to Smith Travel Research (STR), the
country’s hotels achieved an Average Daily Rate
Sri Lanka had one of the fastest rates of (ADR) of approximately USD($) 113, from Economy
post-COVID recovery, achieving over 80% of to the Luxury segment from 2013 to 2023. The
pre-COVID tourism arrival numbers within two data table in Figure 13 below outlines the
years of reopening to tourism. In 2023, performance of approximately 21,000 registered
Skyscanner ranked Sri Lanka among the Top 10 hotel rooms that historically provided data to STR
destinations globally for the highest uptick in from the period of 2013 to 2023 (years
demand for flight searches. The island’s mild 2020-2022 omitted due to COVID-19). An ADR
tropical climate and diverse landscapes make it an exceeding USD$ 110 for a market where the
all year destination, providing investors with ample majority of inventory ranges between Midscale to
opportunity to mitigate risk and discount Upper Upscale, suggests hotels in Sri Lanka have
seasonality when under-writing investments in Sri demonstrated resilience and performed
Lanka’s tourism sector. remarkably well, despite numerous shocks and
setbacks over the years. Similarly, new supply has
been well absorbed, while rate can be maintained.

Figure 13 – Sri Lanka Average Hotel Market Performance: 2013 – 2023

2013 2014 2015 2015 2016 2017 2018 2019 2023 Averages
ADR (USD) $125 $127 $121 $104 $109 $112 $117 $112 $90 $113
Occupancy (%) 64% 60% 57% 68% 69% 65% 63% 51% 51% 61%
RevPAR (USD) $80 $76 $69 $71 $76 $73 $74 $56 $46 $69

$120 60%
$100 50%
$80 40%
$60 30%
$40 20%
$20 10%
0 0%
2013 2014 2015 2015 2016 2017 2018 2019 2023
ADR (USD) RevPAR (USD) Occupancy (%)

Source: Smith Travel Research, 2024

INVEST IN TOURISM SRI LANKA 14