Cable Car/Hotel at Colombo, Sri Lanka

Cable Car/Hotel at Colombo, Sri Lanka

Project Cost: USD 13Mn

Amount Invested : USD1.5Mn

Amount Required : USD 7Mn

Knowledge / Experience Required: finance

Proposed Investor’s Role:
as mentor
as consultant

Industry: tourism / hospitality

Project Stage: concept


Company History:
We are a project development company who are engaged on the tourism sector. The founders are professionals in various sectors such as Marketing, engineering and legal services having experience in multinational companies.Our company is engaged in several sector developments such as Renewable energy Tourism consultancy etc…We are currently in the process developing the first ever cable car project along with a four star hotel and will expand up to a theme park. We are looking for majority equity partners sri lankan well know establishments will join the development as minority stake holders. ROI 12% and IRR 28%. Total project cost for the Cable car and Hotel is USD 13Mn

Product / Service Description:
This will be the first ever Cable Car project in the country with swizz engineering and equipments. The hotel is with 50 rooms and will be expanded up to 150 on phase two along with the theme park of 12 Acres. The selected area for the development is a highly tourism area for locals and foreigners for its natural beauty surrounding and the cool climate. This is a main hub that the tourists like to enjoy since it accommodate as a turning point to main attraction areas around the city. The total length of the ride will be approximately 2.6Km with a Aerial Tramp cable car design with glass bottom cabins. All the equipments will be from Switzerland and engineering and consulting would be through a well experienced company in the trade. The financial feasibility and the technical feasibility was conducted by a swizz company with there experiences. The project IRR as minimum is 26% with minimum ROI 12% using minimum ridership in placement.

Business Opportunity:
Market is huge since there is no competition in the market. The decided ticket price will suite the budget of all tourist who are on a budget travel as well as to be economical to all local riders. The hotel will be a four star to be the most luxurious hotel in the area with modern equipment to prove the quality. The hotel will be located at the top point of a mountain and the cabins will park inside of the hotel. The hotel comes with a Restaurant , Pub and viewing deck to view the 360 degrees view which is stunning.

Revenue Model:
The revenues will be through the Cable Car Riders tickets,Hotel accommodations, Restaurant & Pub. Since this is the first of its nature on the country and due to the economical expenditure levels of the locals the ticket price is really attractive and the particular area is already a tourist hub. The main reason to have this project in the this city is that we do not need to promote the area since it is already well known around the world for its beauty but lack of entertainment activities has been a downfall on the development progress. More than 95% of locals has not experienced such activity due to the demands of the day to day expenditure. Most locals will be very much attracted. The hotel will be on of the high class hotels compared to the existing hotels in the area and due to the location of the proposed hotel will attract more tourist. The existing hotels in the area are mostly three star and below and typically semi luxury. The city doesn’t have any open out door pub or restaurant and most of the existing are squeezed on the space. The main plus point will be the location. According to statistics it seems more than 1.5Mn tourist do arrive to the city and more than 1mn do bypass the city due to lack of entertainment. Further the current activities are simple ones which the ticket price is almost the price which we have decided for such advanced ride.

Management Team:
The Management team is a highly reputed team with professional backgrounds in various sectors and will be hiring more reputed bodies when the time of operations.

Current Status:
The project will be located in Sri Lanka, it is a start up few reputed organizations on the tourism sector will join hands for the minority stake. All approvals designs budgets surveys have been completed through reputed bodies. U to date the project development expenditure is approximately USD 600,000.

Funding Milestone:
Stage 01- Ordering equipments
Stage 02- Civil works/ Infrastructure
Stage 03- Shipping Freight
Stage 04- Assembling
Stage 05- Professional fee

Business Valuation:
51% it is purely based on the amount of equity. Local reputed organizations will be owning 49% according to the discussions we had.

Expected Return On Investment:
ROI 12%

Investment Risk and Mitigation:
The risk is very mush low since there is no competition in the market and though it is new development we will work with reputed engineering teams who are ex[experienced and mainly as mentioned the city is already accommodating 2Mn tourist a year and our target is only 25% of the total ( 500,000 riders) to be in the safer side. All calculations on the financial feasibility is based on 500,000 riders.

Exit Strategies:
After recovery of the investment and profits he could either sell the shares to the stock market at any given time or could sell the shares to the minority stake holders or refinance the project under the project company name and recover the investment.


Milanka Gajanayake (
Company Name: Tharega Holdings (Pvt) Ltd
Postal Address : 736/1, Mattumagala, Welisara, Colombo
Country : Sri Lanka
Telephone : 0094775744236
Mobile: 0094775744236