Lanka Mammoth (pvt) limited Tourism hotel on the sea, Sri Lanka

Lanka Mammoth (pvt) limited Tourism hotel on the sea, Sri Lanka

Project Cost: $10 million

Amount Invested : $ 2 million

Amount Required :$ 8 million

Knowledge / Experience Required: finance

Proposed Investor’s Role: full time, part-time, as mentor, as consultant

Industry: tourism / hospitality

Project Stage: seed, start-up

Sri Lanka, an island off the Indian subcontinent with land area of 64,470 square kilometres, has a population of around 19.7 million people. The workforce, highly literate, makes up 35% of the population. With an economy of $43.3 billion (2010 estimate) and per capita GDP of approximately $5300, the country has experienced sustained growth in recent years due to political stability, the removal of travel advisory, and favourable tourism rating. The government is committed to further developments of the economy- ranked as one of the most liberalised in south Asia – by creating a business climate conductive to private investment. Investors receive preferential tax rates, guarantee on investment agreements, exemptions from exchange control, and 100% repatriation of profit.

Lanka Mammoth(pvt) limited company will launch the physical components of interrelated systems providing commodities and services essential to enable, sustain, or enhance societal living conditions, with satisfied business communities. Lanka Mammoth is planning to hit the core of the industry with new idea and unique passion at unique place, to take the full advantage of recent changes in tourism industry.

The Lanka Mammoth form as a start up company in tourism industry charming a tourist hotel in southern coastal part of Sri Lanka, located overlooking the Galle fort, is a world heritage site and the largest remaining fortress in Asia built by European occupiers. The Dutch built the present Fort in the year 1663. Other prominent landmarks in Galle include the natural harbour, the Natural Maritime Museum, St. Mary’s Cathedral founded by Jesuit Pries. Galle is also an exciting internationally famous visitor destination and it marks the highest in Sri Lanka of 35.16%.

The Lanka Mammoth hotel (with capacity of 150 rooms) will be set up as a Limited Liability Private Company of southern Galle and will reside in the country. Lanka Mammoth is the centrepiece for the entire tourism experience.

6.5 Acres land that we proposed to purchase is the only private island of this size off the south coast of Sri Lanka. A unique island of high elevation which is connected to the main land by a narrow beach of beach and is surrounded by spectacular rock formations. There is a small beach to one side shaded by coconut palms, and screw pines are abundant on the southern point facing the ocean.

Company has planned to spend $ 10 million on this project from purchasing the land and to the budgeted expenses for the first 3 months of business run, with $ 2 million from the owner, and the balance $ 8 million as a loan for a 10 year term with 8 to 12 months of grace period of repayment, and rate of no more that 5% per annum. We anticipate repaying the loan by March 2023.

Sources and uses of funds
Sources of funds $
Proposed loan/Investment 10,000,000
Total funds available 10,000,000

Uses of funds
Land purchase 4,000,000
Construction Capital 4,500,000
Start-up Utility/wages 500,000
Insurance 400,000
Marketing 600,000

By year 5 our hospitality will be producing over $ 5 mn annualy, and is expected to opperate at 80% of net profit. Revenue projected for Fiscal Year 1, without external funding, is expected to reach $ 2.4mn. annual growth projection indicade an avarage increase of 6.5% to go for a $ 5 mn target in FY5.Now, Lanka Mammoth at a point where intend to secure $ 10mn through a loan/investment, to start the journey to be the Mammoth of the tourism industry.

The Market Opportunity

Within the hospitality industry, the Lanka Mammoth hotel will be competing with hotel as there are only 17 star rated hotels( 2 to 5) in south coast with no more than 1500 rooms(total number of rooms is 5099 in south coast) to accommodate around 250,000 tourists, therefore more than half of them accommodate by supplementary establishments. Total number of foreign guest nights in south coast region was 1,213,203 and local guest nights were 430,445 in year 2010. The Lanka Mammoth hotel facilities will be higher and far nicer than other hotels in the area. All of the hotels in the area are fairly standard chain hotels, nothing noteworthy. The Lanka Mammoth – on the other hand, is a beautiful, elegant hotel – in a unique island, on the sea.

The Lanka Mammoth hotel has different target groups that it is going to successfully attract. The first are the tourists more than 250,000 per year who travel south coast region. The second groups are the locals that just want to get away for the weekend. They may have activities planned for the weekend at the parks, local towns or just choose to relax in a comfortable at Lanka Mammoth hotel. Others will just want to have the experience of service presented by Lanka Mammoth hotel. While we will certainly get customers that fall outside of these groups, this classification should be fairly accurate.

At first glance you might not even notice the unassuming glassed building festooned with flags of many nations. But once inside the front door you realize that this could only be the Lanka Mammoth hotel. A graceful “Thambili”, (king coconut)and the nuts of which Sri Lankans regard as a \”living pharmacy\” is the most versatile and medically practical may greet you as one of the staff takes your bags and leads you to a cozy alcove for Ceylon tea and delicate biscuits.

Competitive Edge

The Lanka Mammoth PLC has two distinct competitive edges that differentiate it from the competition. The first is the never-ending attention to detail and customer service. The Sri Lanka recognizes that their mission is to ensure that their customers have the finest stay with them. Lanka Mammoth PLC/Hotel will do whatever it takes to ensure the customer\’s happiness. This will be showcased in hotel which will offer certified and trained service system from the beginning. Their second competitive edge is the unique facility. The facility is so wonderful in part because of the actual structure – which is a magical place to behold and stay at. The tiffany lamps inside, the original gas, solid-silver fixture lamps, at the hotel gallery where you finds historic stories about the country, antiques are all amazing and aquarium – as are the only hotel which has those in the country.

To create a hotel whose primary goal is to exceed customer’s expectations along the lines learned of “unprecedented hospitality and service standards” by doing that, projected revenues for year 1, without external funding, are expected to be $ 2.4mn. Annual growth is projected average to be 6.5% to achieve $ 5mn in year 5. We feel that within 7 years Lanka Mammoth will be suitable position for further expansion.

“We are committed to bring the superior for the southern coast area and surrounding all over the country as well. We will exceed the expectations of our guests and colleagues by providing a contemporary, world class experience, through continuous commitment to the development of our colleagues and product to achieve maximum growth and profitability.”

Management team
Like starbuck’s coffee where every must have “a passion for coffee and the coffee experience” at Lanka Mammoth, everyone we hire will have a passion for tourism industry. Although no one has build exacly like Lanka Mammoth before, we will be assembled a team of people who have build unique passion at Hotel servece. With the Owner and appoineted directors to complete our team, Lanka Mammoth will be hiering a General Manager, Marketing manager, and the chef. These execatives will manage our Hotel and staff respectively, and assure that Hotel goals and objectives are accomplished. With these positions filled, we will have evreyone we need to effectively and efficiently execute our plan.

Keys to Success
By offering unique experiences and service to our guests, position the Lanka Mammoth hotel will be the majestic in the region among tourists and travellers. Company will patronage strong market position with the world wide tourists by link into the strongest referral engines and tourist association engines for reservation, which will maintain sound financial management of the venture.

The market for Lanka Mammoth Company/ Hotel will clearly grow, giving us a prime opportunity to provide better unieque services to new cutomer needs. The explosive growth for this market supports Lanka Mammoth Hotel to be reaching its break even point occupying 12 rooms per day. And profitability in 6 years. By driving more than 70% of avarage profits back in to the company, we expected to accelerate loan payment and be debt free by 6years , a full 4 years ahead of schedule.
Contact Information

Milinda Perera (

Postal Address : A/1/2, Manning town buildings, narahenpita, colombo. Sri Lanka

Telephone : +94112688571