12 Amazing Hotels in Arugam Bay Sri Lanka You Can’t Miss

Last Updated on March 7, 2025 by Oliver

Arugam Bay is Sri Lanka’s go-to surf town on the southeastern coast, a long-time favorite among backpackers and surfers chasing world-class waves. It’s one of those places where life slows down—days revolve around surfing, beach lounging, and the occasional party. Compared to Sri Lanka’s more touristy spots like Ahangama, Weligama, and Mirissa, Arugam Bay is also refreshingly affordable.

If you’re visiting Sri Lanka in the summer, Arugam Bay needs to be on your list. I’ve spent a good amount of time here, escaping the bad weather on the south coast, and I loved how much quieter and cheaper it was.

That said, finding a great place to stay in Arugam Bay can be tricky. So, to save you the hassle of digging through endless options, I’ve put together a list of my favorite hotels in Arugam Bay, whether you’re here for the world class surf breaks, the beach, or just a laid-back escape.

About Arugam Bay

Compared to beach towns like Weligama, Ahangama, or Mirissa, Arugam Bay is still much less developed. You won’t find as many boutique hotels or trendy Instagrammable cafés here—just laid-back beach bars, wooden shacks, and a more rustic vibe. Personally, I think that’s part of its charm.

One of the best things about Arugam Bay is its location on Sri Lanka’s east coast, which means its high season runs from May to September—opposite to the south coast. So if you’re visiting Sri Lanka during the summer months and still want sunny beach days and great surf, this is the place to be.

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What are the Best Hotels in Arugam Bay?

As I’ve already mentioned, Arugam Bay doesn’t have a huge selection of boutique hotels, luxury resorts, or high-end stays. Everything here is a bit more low-key—but honestly, that’s what I love about it. Most hotels are right on Arugam Bay Beach or at least within walking distance, and you’ll find plenty of small, family-run guesthouses and charming boutique stays (though most aren’t super fancy).

That said, I’m a sucker for a beachfront hotel with nice decor, so of course, I do have some favorites.

Bay Vista is a great option with private beach access, a cute design, and even yoga classes.

Surf n Sun Arugam Bay is one of the few places that truly has that classic Sri Lankan boutique hotel aesthetic (if you know what I mean), making it a beautiful spot to stay and, I think, my personal favorite.

Whisky Point Resort is another place I really enjoyed staying because they offer little wooden beach huts right on the sand. You can literally step out of your bedroom straight onto the beach and into the ocean—perfect for beach lovers.

1. Surf n Sun Arugam Bay // Best Boutique Hotel in Arugam Bay

Even though this list isn’t in any specific order, I have to start with Surf n Sun Arugam Bay because it’s my favorite. This boutique hotel has stunning A-frame villas with one or two bedrooms, making it perfect for couples, families, or even a small group of friends. The entire property feels like a tropical oasis, with lush gardens surrounding the villas, giving it a super peaceful vibe.

Many of the villas come with huge windows, a freestanding bathtub, a private garden, and free WiFi access. The air-conditioned rooms are beautifully designed with stylish interiors that make the whole place feel special. In my opinion, this is easily one of the coolest hotels in Arugam Bay.

Best for: Couples, Familis, Groups of friends
Highlights: Beautiful Decor, Beautiful Private Bathroom, On site restaurant

Pictures above are from Surf n Sun Arugam Bay

2. Bay Vista // Best Place to Stay for Yoga

One of the best things about Bay Vista is the yoga. Finding a good yoga studio while traveling can be tricky, so having daily classes right where you’re staying (every morning at 7 AM) is a huge plus. If you’re into yoga or just want to start your day with a good stretch, this is the perfect place.

On top of that, Bay Vista is a lovely little beachfront hotel. It’s right by the ocean with a sun terrace and a chill hangout area just steps from the sand. The vibe is a mix of modern and traditional Sri Lankan, which makes it feel stylish but still super cozy. The whole place is really well-kept, neat, and clean, but it still has charm.

The rooms are spacious and come with air conditioning, free WiFi, a tour desk, and an on-site restaurant. Plus, the hotel is only about two hours from Yala National Park, so if you’re up for a day trip safari, it’s definitely worth adding to your plans.

Best For: Couples, Yoga Lovers
Highlights: Yoga Classes, Free Private Parking, Beachfront Location

3. Jetwing Surf Arugam Bay

I know I mentioned that there aren’t many fancy resorts or luxury hotels in Arugam Bay, and that’s true, but Jetwing Surf is pretty much one of the only 5 star hotels in Arugam Bay. If you’re planning to visit during the summer months and want a luxurious experience while still soaking up that laid-back Arugam Bay vibe, this is the place to be.

To start, it has a massive outdoor swimming pool right by the ocean. Honestly, it’s probably the coolest swimming pool in town—perfect for unwinding after a day of surfing or exploring. The rooms are like little beach huts, each with a king-size bed, air conditioning, and all the comfort you’d want in a tropical escape.

The on-site restaurant serves up some amazing meals, so you’ll definitely be well-fed during your stay. It’s also one of the most popular hotels in the area, so if you’re thinking about booking, definitely get your room sorted early to avoid missing out.

Best for: Couples, Families, Honeymoon
Highlights: Outdoor Pool, Delicious Breakfast

4. The Spice Trail Arugam Bay // Best Arugam Bay Hotel for Long-Term Stay

The Spice Trail is one of the most beautiful hotels in Arugam Bay, located in lush greenery with a cozy cafe and restaurant at its heart. The coffee here in the mornings is fantastic, perfect for starting the day off right. It’s also one of the few 4 star hotels in Arugam bay.

The rooms are individual villas that are incredibly spacious, each with large TVs and lots of room to spread out. It’s the kind of place where you almost feel like you have your own little apartment, which is why it’s a great choice for long-term stays. Whether you’re relaxing by the pool, heading out on a safari to Yala National Park, or hopping on one of the free bikes for a ride around town, there’s no shortage of things to do.

Best for: Long-term stays, couples looking for extra space and comfort.
Highlights: Swimming pool, spacious rooms, peaceful atmosphere.

5. The Sandpit Arugam Bay // Best Villa in Arugam Bay

If you’re coming to Arugam Bay with a group or two couples, The Sandpit Arugam Bay is an excellent choice. It’s a private villa, so when you book, you basically have the entire property to yourself. The villa can accommodate four people with two queen beds and offers a spacious outdoor area plus a full kitchen—perfect for long stays or those who want to cook their own meals.

The villa has that modern boutique style that’s popular in Sri Lanka, and it’s just a really beautiful spot to relax. It’s the kind of place you can feel at home in, especially if you’re planning to stay for a while.

Best for: Groups, families, or two couples looking for more privacy and space.
Highlights: Entire villa to yourselves, stunning design, spacious outdoor area.

6. Whisky Point Resort // Best Eco-Friendly Stay in Arugam Bay

Whisky Point Resort definitely has an eco-friendly vibe that makes it stand out in Arugam Bay. The resort features little wooden cabanas right on the beach, with direct views of the Indian Ocean and easy beach access. Waking up and seeing the waves crashing in the morning is a pretty special experience.

The rooms are basic, and while there’s no air conditioning, the ocean breeze keeps things cool. Their budget rooms are a bit different, as they’re on stilts and partially open, so just keep that in mind when booking. Despite being a bit rustic, the property is gorgeous, and their Sri Lankan breakfast is definitely worth waking up early for.

Best for: Eco-conscious travelers who love the beach vibe.
Highlights: Beachfront location, incredible Sri Lankan breakfast, eco-friendly vibe.

7. Babar Point // Best for Surfers in Arugam Bay

Babar Point in Arugam Bay is exactly what you’d expect from a little beach hotel in a surf town—and honestly, it’s everything you want too. The place has this super authentic vibe with its traditional design, and it fits in perfectly with the laid-back atmosphere of Arugam Bay.

The beautiful swimming pool, surrounded by rooms and palm trees, is the perfect spot to unwind after a day in the surf. Babar Point also offers surf lessons, board rentals, and surfboard storage, making it a great option for surfers who want a bit of luxury and convenience during their stay.

Best for: Surfers who want a mix of surf and comfort.
Highlights: Swimming pool, surfboard rentals, surf lessons.

8. ArugamBay Surf Resort // Best Cheap Hotels in Arugam Bay

ArugamBay Surf Resort is the perfect spot for budget travelers or groups, especially if you love surfing. The resort is located close to the surf point and has a relaxed, laid-back atmosphere. The rooms are simple but clean, with options for private or shared accommodations.

One of the best features of this place is the common area, where guests can hang out and connect with one another. The resort also has its own bar and restaurant, serving delicious local food at very affordable prices.

Best for: Budget Travelers, Groups
Highlights: Relaxed Atmosphere, Common Area with Bar/Restaurant

9. Oruwa Boutique Villas

Oruwa Boutique Villas is one of those places that stands out in Arugam Bay. The rooms are modern, with sea views, but they still have that character that makes them feel cozy and special. The real highlight here is the massive deck with a bar and restaurant, plus the infinity pool that overlooks the lagoon.

If you’re looking for something a little more unique and stylish, this is definitely one of the coolest spots in town. It’s perfect for couples or anyone who’s looking for a peaceful and scenic place to unwind.

Best for: Couples, nature lovers, and anyone seeking some peace and quiet.
Highlights: Infinity pool with lagoon views, free shuttle to the beach, spacious villas.

10. Lucky Bay

Lucky Bay is a family-run spot that gives you great value for money. The accommodations are simple with traditional Sri Lankan interiors, but if you’re looking for a basic place to crash with air conditioning, it’s a fantastic choice.

It’s just a short walk from the beach, making it perfect for those who want to stay close to the water without spending a lot. While there’s no on-site restaurant or surfboard rentals, the friendly staff will point you in the right direction for everything you need, from local eateries to surf spots.

Best for: Solo travelers, backpackers, and anyone on a budget.
Highlights: Close to the beach, basic and affordable accommodations, family-run atmosphere.

11. The Beach Wave Hotel

If you’re after a super affordable place right on the beach with a laid-back, hippie community vibe, The Beach Wave Hotel might just be what you’re looking for. It’s not a luxury spot, but the rooms are basic and have everything you need if you’re looking to disconnect and enjoy the simple pleasures of beach life.

The vibe here is relaxed and friendly, with a bit of a boho feel that makes it perfect for travelers who want to relax without all the noise and hustle. The beachfront location is a huge plus, letting you wake up and walk straight to the sand. It’s a great place to retreat to after a day of surfing or exploring.

Best for: Budget travelers, beach lovers
Highlights: Beachfront location, affordable rates, peaceful, and a great place to disconnect.

12. The Blue Wave Hotel

The Blue Wave Hotel is a great choice if you want a comfortable, no-fuss stay close to everything in Arugam Bay. It’s just a short walk from the beach, so you can easily head out to surf or relax by the ocean. The rooms are simple but cozy, with air conditioning and Wi-Fi.

The vibe here is pretty laid-back, with an on-site restaurant serving up tasty local dishes. It’s not the fanciest place in town, but it’s got a great location, a relaxed atmosphere, and a good price for what you get.

Best for: Budget travelers, beach lovers, central location.
Highlights: Walking distance to the beach, affordable prices, comfy rooms.

FAQs About The Best Hotels in Arugam Bay

Is Arugam Bay worth visiting?

Absolutely! If you love surfing, laid-back beach vibes, and a less touristy side of Sri Lanka, Arugam Bay is 100% worth a visit. It’s not as built up as places like Weligama or Mirissa, which is part of its charm. The surf is world-class, the food scene is solid (even if it’s more rustic), and the whole place just has that easygoing, backpacker-meets-surfer energy.

Which season is best for Arugam Bay?

The best time to visit Arugam Bay is from May to September. That’s when the weather is sunny, the waves are at their best, and the whole town comes to life. Outside of these months, a lot of places shut down, and the weather can get unpredictable. So if you’re planning a trip, aim for the dry season to get the full experience.

How do I get to Arugam Bay?

Getting to Arugam Bay takes a bit of effort since there’s no airport nearby, but it’s worth it. The easiest option is a private taxi, which takes around six to seven hours from Colombo. If you want to save some money, you can take a train to either Ella or Batticaloa and then grab a taxi (or Bus) for the rest of the journey. There’s also the bus, which is by far the cheapest way to get there, but it takes the longest and usually requires a transfer in Monaragala or Pottuvil before reaching Arugam Bay.

What are the best restaurants in Arugam Bay?

Arugam Bay has some great food spots, even if it’s not overflowing with fancy restaurants. Mellow Café is a favorite for coffee, fresh juices, and healthy food. Swell Cafe is perfect for a post-surf meal, offering great wraps, burgers, and Sri Lankan rice and curry.

Final Thoughts on The Best Places to Stay in Arugam Bay

I really enjoy Arugam Bay, but I think it’s important to know what to expect. It’s definitely less developed than the south coast, and that’s part of what makes it special. Not every beach town needs to be packed with beach clubs, trendy cafés, and Western restaurants. Arugam Bay is a great middle ground—it still has enough comforts to make your stay easy, but it keeps that laid-back, authentic vibe. It’s the perfect place to slow down, escape the busyness of the south coast, and just enjoy the beach.

Hope this list helped you find the perfect Arugam Bay hotel, hostel, or guesthouse!

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