16 of The Very Best Hotels In Arugam Bay, Sri Lanka

Arugam Bay is a charming coastal village nestled on the eastern coast of Sri Lanka

Arugam Bay is one of Sri Lanka’s many surfing hotspots that is also gaining popularity thanks to its abundance of wildlife and vibrant social scene. 

From its unspoiled, rugged beaches to its incredible restaurants, Arugam Bay provides a unique experience that is good for the soul.

If you’re considering a trip to this coastal gem, then selecting the right accommodation is vital for getting the most out of your experience.

Whether you’re searching for a luxurious retreat or more budget-friendly options, the variety of hotels in Arugam Bay caters to all preferences and wallet sizes. 

In this guide, we’ll explore the top hotels in Arugam Bay designed to suit various budgets, tastes and group sizes, ensuring your stay is truly memorable.

So what are the best hotels in Arugam Bay? Read on below to find out.

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Prepare for your trip to Arguam Bay

**^{Please note prices listed are peak season prices. Prices will be significantly cheaper before June and after September.} 

Luxury Hotels In Arugam Bay 

Jetwing Surf Hotel

⭐Star Rating: 5
?Average Price per Night: $320

Jetwing Surf Hotel has to be one of the most luxurious hotels in Arugam Bay (and you would certainly hope so for the price tag). 

It’s located just outside of the main beach area in Pottuvil.

The rooms at Jetwing are beautifully decorated cabana-style accommodations which gives for that rustic, yet luxurious vibe. 

At the property, you can enjoy an infinity-esque style pool that overlooks the beach and the ocean and an onsite restaurant that serves up delicious, fresh food using locally sourced produce. 

Jetwing has hotels all over Sri Lanka, so if this kind of luxury is your vibe then make sure to check out their other properties. 

Oruwa Boutique Villas

⭐Star Rating: 3
?Average Price per Night: $130

Oruwa Boutique Villas has to be one of the most stunning hotels in Arugam Bay. 

The property is located on the banks of Arugam Lagoon, with an infinity pool overlooking the water. 

The lagoon is home to an abundance of wildlife meaning you can see elephants, crocodiles and exotic birds directly from the comfort of your hotel. 

Each room has its own terrace with a lagoon view and there is also an onsite restaurant at the property. 

This hotel is truly incredible that you probably won’t want to leave (but I encourage you to as there are so many epic things to do in Arugam Bay).

Blue Waters 

⭐Star Rating: 4
?Average Price per Night: $120

Blue Waters is another hotel located just outside of the main town adjacent to Pottuvil Beach. 

Blue Waters is a small and eco-friendly lodge that has rustic-style cabanas with a beachfront or garden view. 

Onsite you can find a restaurant, where barbeques can be organised upon request and you are just a 2-minute walk from Pottuvil Beach. 

Each room comes equipped with air conditioning and mosquito nets so you can enjoy rustic living without the discomfort. 

The Spice Trail

⭐Star Rating: 4
?Average Price per Night: $200
**Two-night minimum stay 

The Spice Trail is located in the centre of Arugam Bay which means you’re super close to the action and some of the best restaurants in town. 

Despite being in the centre of town, Spice Trail is nestled in a dreamy garden oasis meaning you can find some peace amongst the vibrant atmosphere that you get in Arugam Bay. 

All rooms are clean, bright and spacious and the interiors ooze that boutique luxury feel. 

The property also has a pool which is perfect for those lazy days when you don’t fancy getting sticky and sandy. 

Near Spice Trail, you can also find one of the best coffee shops in town, Kaffi as well as Little Bang Kitchen (if you’re craving some East Asian flavours);.

Paddyway Resort

⭐Star Rating: 4
?Average Price per Night: $165

Paddyway Resort is the perfect option if you’re looking for a chilled hotel with a pool that’s set back from the main street, so you’re away from the hustle and bustle but still close to town and all of the nice bars and restaurants. 

All rooms come with terraces and either a pool or lake view and onsite, you can find a nice restaurant that offers a mix of traditional and Western food. 

Surf N Sun

⭐Star Rating: 4
?Average Price per Night: $180

Surf N Sun is one of the most beautiful eco-hotels in Arugam Bay located in the centre of town. 

The rooms are set amidst a tranquil garden oasis and have a nature-inspired theme. 

If you’re in the market for super luxury I recommend booking the Luxury Family Cabana with Garden View. 

The room is absolutely stunning with large windows to let in lots of natural light. 

And as a bonus the brunch offering at Surf N Sun, is, in my opinion, one of the best brunches in Arugam Bay. 

Shady Lanes

⭐Star Rating: 4
?Average Price per Night: $120
**Two-night minimum stay 

Shady Lanes is a super cool boutique hotel in Arugam Bay that just so happens to be situated above one of the best restaurants in town. 

Rooms are bright, fresh and airy and each comes with its own balcony. 

One of the best things about staying here is only having to walk down a set of stairs to order THE BEST peanut butter french toast you’ll ever try. 

Whiskey Point Resort 

⭐Star Rating: 3
?Average Price per Night: $150

Whiskey Point Resort Whisky Point is the perfect haven that’s just a 15-minute from Arugam Bay.

All cabanas come with an ocean view, allowing you to completely immerse yourself in nature. 

The best bit? You get to wake up every morning to the sound of the ocean. 

The only thing I would say you need to be mindful of is that the main Friday night party is hosted at Whiskey Point, so if you don’t want to listen to loud music on your Friday evening then it might not be the best option for you.

Stay Golden 

⭐Star Rating: 4
?Average Price per Night: $125
**Two-night minimum stay 

Stay Golden, is one of my favourite hotels in Arugam Bay. 

As someone who has been to Arugam Bay 3 times and stayed in her fair share of hotels, Stay Golden, for me, is one of the best in town. 

Located just a 5-minute drive outside of the main street, Stay Golden is a tranquil oasis for those who want to be close to the action, but not too close. 

At Stay Golden, you can find beautiful cabana-style accommodations, each with their own terrace, complete with hammocks.

You can also find a relaxing pool and an onsite restaurant with some very good food. 

The property has beachfront access and is in the perfect spot to watch the sunrise over Arugam Bay. 

They also host daily yoga sessions from their stunning ocean-view yoga shala. 

Mid-Range Hotels In Arugam Bay 

Atteriya Chill

⭐Star Rating: 3
?Average Price per Night: $83

Atteriya Chill is one of those places where the pictures online just don’t do it justice. 

Located directly on the beach, Atteriya is the perfect place for those who want to be both close to the beach and close to all of the action in Arugam Bay. 

Onsite you can find a restaurant and enjoy beachfront BBQs whilst relaxing on the comfy bean bags surrounded by cute lanterns. 

Rupas Hotel 

⭐Star Rating: 3
?Average Price per Night: $72

The rooms at Rupas Hotel are no thrills but the location is second to none. 

Each room comes with its own small terrace area and a hammock. 

The property overlooks one of the most beautiful parts of Arugam Bay Beach, close to some of the iconic fishing boats that you can find in this area of Sri Lanka. 

Underneath the hotel, you can find a great restaurant where you can get some delicious pizza and small plates. 

Rupas is also a 30-second walk from the best coffee shop in town, Meori’s. 

Salty Alchemy

⭐Star Rating: 3
?Average Price per Night: $105

Salty Alchemy is perfect for those looking for an intimate and chilled escape. 

With just 3 rooms Salty Alchemy provides a homely and welcoming oasis. 

Each room comes with its own beach-view terrace, complete with hammocks. 

You have beachfront access and also a rooftop chill-out area, which doubles up as a great sunrise viewing spot.

There is also a fully-equipped kitchen that is free for you to use, and you can help yourself to the complimentary tea and coffee. 

Oh, and if you stay here you need to love dogs, they have 8 very wholesome 4-legged friends on the property (all rescued street dogs).

Budget Hotels In Arugam Bay 

Wavehunters

⭐Star Rating: 2
?Average Price per Night:$20

Wavehunters is the coolest new hostel and hotel in Arugam Bay. 

It’s also one of the only hotels in Arugam Bay with a dedicated coworking space. 

The rooms have a minimalist boutique design and are so reasonably priced considering what you can find at the property. 

Vegetarian breakfast options are also available here… I’ve heard that the smoothie bowls are super delicious. 

If you’re looking to meet other laidback, fun travellers (or get some work done) this is one of the best places to stay. 

Surf Beach Hotel

⭐Star Rating:
?Average Price per Night: $30

At Surf Beach Hotel you can find super cheap rooms directly on the beach. 

Rooms are super spacious and the owners are extremely friendly, which makes you feel like you’re right at home. 

If you’re interested in surfing they can also organise lessons for you with a great surf school. 

If you want great rooms on a budget then book a room at Surf Beach Hotel. 

Garden Beach Hotel

⭐Star Rating: 2
?Average Price per Night: $30

Garden Beach Hotel is a beautiful little budget hotel just a 1-minute walk from the beach. 

The rooms are basic but the 100’s of 4/5-star reviews speak for themselves. 

All rooms come with their own little terrace and a garden view. 

You can also find some comfy hammocks dotted around the property. 

Not only are the owners extremely friendly and welcoming but the complimentary breakfast is also amazing. 

Little Lagoon

⭐Star Rating: 2
?Average Price per Night: $45

Little Lagoon has to be one of the most beautiful boutique-style hostels/ hotels in Arugam Bay. 

Dotted around the hostel you can find cosy little corners with hammocks and beanbags, perfect for chill mornings reading a book. 

Little Lagoon is just a 3-minute walk from the beach and close to all of the best bars and restaurants in town… but far away enough that you still get some peace and quiet of a night. 

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Happy Exploring

I hope this post has helped you choose one of the best hotels in Arugam Bay.

If you have any questions please do not hesitate to reach out.