Teardrop Hotels

Inspiring hotels, atmospheric destinations, engaging experiences

Welcome to Teardrop Hotels

Sri Lanka is our passion. Our collection of small, stylish, service-driven boutique hotels champion the island’s rich history, dazzling diversity and warm, open-hearted people, while our fusion menus celebrate the country’s abundant variety of fresh local produce.

Acclaimed for contemporising centuries-old heritage buildings and vintage tea bungalows-with-views in distinct regions across the island, our luxury hotels in Sri Lanka are defined by each destination and encourage you to explore, experience and shape your own Sri Lanka story.

Our Story


From the beginning
Michael Davies & Charlie Austin met on the cricket pitch at Bryanston School, England, in 1995. Once school days were over, they stayed in regular contact, although Michael followed his father’s footsteps and moved to Hong Kong whereas Charlie migrated to Sri Lanka and set up Red Dot Tours.



Fate brought them back together in 2001 after an unscheduled stopover for Michael in Colombo. Deciding to stay a few days, he explored the south coast and fell in love with the charm of Galle Fort and its collection of historic, beautiful, yet often dilapidated houses. On impulse he bought 41 Lighthouse Street, which after being lovingly restored has become one of the most sought after villa rentals in the Fort. It was during this renovation that Michael and Charlie identified the need for small, yet luxurious and stylish places to stay and thus set about starting Teardrop Hotels in 2005.

2005