Boutique Hotel on the Indian Ocean Coast, Zanzibar, Tanzania

For sale: an established, profitable boutique hotel on the island of Zanzibar, Tanzania.

The hotel is located directly on the Indian Ocean coastline, on the east coast of Zanzibar. The asset combines a well-thought-out concept, high ratings, and a sustainable financial model.

The property is fully operational, staffed with a complete team, and has a verified financial track record covering the last three years. The hotel undergoes regular updates and is maintained in excellent technical condition (including roofs, furnishings, utility systems, and the swimming pool). This is a turnkey hospitality business with a stable operating model and potential for further growth.

Property Description

Infrastructure

• 7 fully equipped guest units, including 2 private beachfront villas and a complex of bungalows
• On-site restaurant (serving breakfast and à la carte options)
• Lounge areas and communal spaces
• 2 swimming pools: one private and one shared
• Technical/utility areas
• Backup power generator
• The hotel comes fully furnished and equipped with all the infrastructure necessary for seamless, uninterrupted operations.

Hotel Concept

The hotel operates as an intimate boutique property with a limited number of units (7 in total), allowing for a high level of service, privacy, and a personalized approach to every guest.

The concept is geared toward an international audience that prefers a tranquil getaway right on the oceanfront, away from mass tourism and noisy infrastructure.

Premium Location

The property is situated on the east coast of Zanzibar, directly on the Indian Ocean—in one of the island’s most peaceful and picturesque areas. This quiet coastal stretch, characterized by white sands and an intimate atmosphere, remains free from large-scale development—a factor that drives consistent demand from European and international travelers.

The location is particularly well-suited for the boutique hospitality segment; guests are drawn to its seclusion, safety, sense of a "private escape," and high level of comfort, all far removed from the bustle of mass tourism. Its prime oceanfront position, combined with a limited supply of high-quality properties in the area, ensures strong investment value and liquidity.

Ratings and Reputation

The property is listed on international online booking platforms and consistently receives high guest ratings:

• Booking.com — 9.3 rating
• Airbnb — Superhost and Guest Favorite status
• Positive reviews and repeat bookings
• High ratings generate an organic flow of guests

Operational Metrics

• Average annual occupancy: 65–70%
• Operating model: 11 active months per year (1 month allocated for scheduled maintenance/upgrades)
• Average Daily Rate (ADR) — including breakfast
• Villas: 200–350 USD (depending on the season)
• Bungalows: 100–150 USD
• Blended Average Daily Rate (ADR) for the property: ~170–230 USD

Financial Performance

Net Operating Profit:

• 2023: ~119,634 USD
• 2024: ~159,766 USD
• 2025: ~160,991 USD

3-year average profit: ~146,000 USD/year

Estimated yield: ~11–13% per annum (depending on the final transaction price)

Organizational Structure and Team

The hotel is managed by an established operational team with clearly defined areas of responsibility and well-structured processes. The team has been in place and operational since the hotel’s launch.

The organizational structure includes:

• On-site manager (operations)
• Reception / guest relations staff
• Housekeeping (2 staff members)
• Kitchen / chefs (2 staff members)
• Maintenance (on-call and permanent)
• Security (2 guards)
• Tax consultancy and legal support

Growth Potential

The property is already generating a stable profit, with further opportunities to increase returns through:

• Gradual increases in the Average Daily Rate (ADR) during the high season
• Developing the restaurant and attracting non-resident guests
• Expanding service packages
• Establishing a small spa or massage area
• Strengthening direct sales and marketing
• Optimizing the operational model

With effective management, profitability can be further enhanced without requiring significant capital investment.

Transaction Structure

The asset is being sold via the transfer of a 100% equity stake in an existing, registered company.

The company’s assets include:

• a 1,500 sq. m plot of land
• all buildings and structures located on the site
• utility infrastructure and equipment
• hotel furniture and furnishings

The land is held under a long-term lease (leasehold) valid until 2034, with an option for renewal in accordance with established procedures.

Legal Structure

The company is registered as an investment vehicle with a foreign investor license, which allows for:

• 100% foreign ownership
• eligibility for residence/work permits
• operation of hospitality business activities

All necessary operational licenses are in place, including:

• a hotel operating license
• tax registration
• all required business permits

The legal structure is transparent and ready for transfer to a new owner.

The current owners will ensure a smooth transition of the business, including providing consultation and ongoing support.

Further details will be provided upon the signing of an NCNDA (Non-Disclosure and Non-Circumvention Agreement); formal negotiations will commence once proof of funds is verified.