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Oceanfront Boutique Hotel And Villas In Zanzibar For Sale

Zanzibar, Tanzania
Asking Price:
$1,300,000 (USD) Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
$265,000 (USD)
Cash Flow:
$170,000 (USD)

A fully operational oceanfront boutique hotel located on one of the most desirable beaches in Zanzibar – Michamvi Pingwe. The property offers 7 units (5 guest rooms and 2 private villas), two swimming pools, a restaurant, direct beach access, and all required hotel licenses. The hotel has been successfully managed for several years and demonstrates stable year-round performance.

Financial Performance (2024):

Average Occupancy: 66% (hotel closed for one month in the rainy season)

Stable revenue streams from accommodation, restaurant, tours and transfers

Current Net Profit: results in an ROI of approximately 13% at the asking price

Debt-free operation: no loans or liabilities

The current ROI reflects a conservative and realistic operational model for a beachfront boutique hotel in Zanzibar, providing a low-risk and transparent investment opportunity.

Growth Potential:
With a few straightforward improvements, the ROI can be increased to 18–22%, including:

Opening the restaurant to external guests

Expanding tours & transfers as an additional revenue stream

Increasing ADR during the high season

Strengthening direct bookings to reduce OTA commission costs

This property represents a turnkey hospitality investment in one of the fastest-growing tourism destinations in East Africa. The hotel is fully staffed, licensed, and ready for immediate takeover by a private buyer or an investor seeking a stable cash-flowing oceanfront asset.

A detailed financial summary is available upon request.

Property Information

Real Estate:

Lease

Lease Terms:

The property operates under a land lease valid until 2034. The lease can be fully transferred to the new owner, and it can be renewed for an additional long-term period in accordance with standard Zanzibar regulations. Renewal is a straightforward process and is commonly granted for operational hotels.

Leasehold Rent:

$500 (USD) per annum

Living Accommodation:

The property currently includes staff accommodation and a small management area. The new owner can convert part of the space or add an additional structure for private living quarters if desired.

Location:

Michamvi Pingwe, Zanzibar – one of the most desirable and exclusive beachfront areas on the island. The hotel is located directly on the oceanfront with unobstructed sea views, white-sand beaches and year-round tourist demand. The area is known for luxury resorts, calm waters, and high guest satisfaction.

Premises Details:

The property consists of 7 units: 5 guest rooms and 2 private villas (one with a private swimming pool). Additional facilities include two swimming pools (one private, one shared), a fully equipped restaurant kitchen, a reception area, storage rooms, utility spaces, and staff facilities. The hotel is fully operational, furnished, and sold as a turnkey business.

Size in square feet:
15,600 sq ft (1450 m²)
Planning Consent:

The hotel holds all required operational licenses, including:

Zanzibar Tourism Commission (ZCT) Hotel License
ZIPA investment certificate
Fire Safety Certificate
Food & Health permits
The property is fully compliant and authorized for hospitality operations. Additional development on the land is possible with new planning approval.

Business Operation

Management type:
This business is owner operated.
Expansion Potential:

Strong expansion potential:

Open the restaurant to external visitors to increase revenue
Add spa or wellness services
Expand tours and transfers as an additional revenue stream
Increase ADR during high season
Strengthen direct bookings to reduce OTA commission costs
There is also space to add more structures subject to local planning approval.

Competition / Market:

Competition in the area consists mainly of boutique hotels and eco-resorts. However, the property benefits from a prime oceanfront location, strong online ratings, unique villa offerings, and direct beach access. High-quality service, private villas, and consistent occupancy levels create a competitive advantage compared to standard hotels in the vicinity.

Reasons for selling:

The owners are relocating to another country and shifting their focus to new business projects. The hotel is fully operational and performing well, but the owners are no longer based in Zanzibar.

Trading hours:

24/7

Employees:
7
Years established:
4

Other Information

Support & training:

We will provide full support and training to ensure a smooth transition for the new owner. This includes operational guidance, staff introduction, supplier contacts, system setup, and day-to-day management procedures. We are available to assist during the handover period and can offer ongoing remote support if needed.

Owner financing:
Owner financing is available. Please contact the seller for more information.
Financing available:

We are open to various payment options, including cash, bank transfer, cryptocurrency, or an agreed instalment plan.

Furniture / Fixtures value:
$60,000 (USD) - included in the asking price
Inventory / Stock value:
$3,000 (USD) - included in the asking price