In short
Guest house financing and feasibility support helps you test whether an island guest house will work and then fund it. DBS Maldives prepares the feasibility study, business plan and financial projections, and the loan application to SME Digital or a bank, alongside the tourism and GST registrations a guest house needs.
What does it take to start a guest house in the Maldives?
A guest house on a local island needs three things to come together: a project that makes financial sense, the money to build or upgrade it, and the right approvals to host tourists. Operating a tourist guest house requires a permit from the Ministry of Tourism, and the Ministry has warned against hosting tourists in any residence without the necessary permits.
Guest houses are governed by a regulation on the operation of guesthouses that has been amended several times, with requirements on rooms, facilities and insurance. Because guest houses supply tourism goods and services, they must also register for GST with MIRA regardless of turnover.
Is a guest house a good investment? What a feasibility study shows
A guest house feasibility study answers the question before you commit savings or take on financing. For a guest house we look at:
- The island and the market: how visitors reach the island, what draws them, and the competition already operating there.
- The property: the number of rooms, the facilities planned, and what the current regulations require.
- Build and fit-out costs: construction, furnishing and equipment, with contingency.
- Revenue: realistic occupancy and room rates through the seasons, plus excursions and meals where offered.
- Running costs and cash flow: staff, utilities, transfers, maintenance and repayments.
Guest house financing: SME Digital and bank options
SME Digital, formerly SDFC, offers Shariah-compliant Guesthouse Financing and Guestroom Financing for starting, expanding and modernising island guest houses, and an equity contribution from the owner is required. Bank of Maldives also offers guest house financing. Products and terms change, so we confirm the current options and eligibility with you before preparing anything.
Lenders want to see that the guest house can repay. We prepare the business plan and financial model the application rests on, then handle the SME Digital loan application or the bank application.
How DBS Maldives takes a guest house from idea to funding
-
First conversation
We discuss the island, the property, the number of rooms you have in mind and how much you can contribute.
-
Feasibility study
We test the market, the costs and the revenue, and tell you plainly whether the numbers work.
-
Business plan and projections
We turn the study into a lender-ready plan with cash flow and repayment projections.
-
Financing application
We prepare and submit the application to SME Digital or a bank, and answer the lender's questions.
-
Registrations and permits
We help register the business, GST and the tourism permit process, so you can open properly.
What do I need for a guest house loan application?
- Details of the land or building and your right to use it
- Your plans for the rooms and facilities, with drawings if you have them
- Construction or renovation cost estimates
- The equity you can contribute
- Your business registration details, or the plan to register
- A feasibility study and business plan with financial projections, which we prepare
- Any further documents the lender asks for, which we confirm before you apply
Frequently asked questions
Do I need a permit to run a guest house in the Maldives?
Yes. Operating a tourist guest house requires a permit from the Ministry of Tourism, and the Ministry has warned against hosting tourists without the necessary permits. The rules sit in a regulation that has been amended several times, so we check the current requirements for your property.
Does SME Digital finance guest houses?
Yes. SME Digital, formerly SDFC, offers Shariah-compliant Guesthouse Financing and Guestroom Financing for starting, expanding and modernising island guest houses. An equity contribution from the owner is required. We confirm the current products and eligibility before preparing your application.
Do guest houses need to register for GST?
Yes. Tourist guest houses supply tourism goods and services, so they must register for GST with MIRA regardless of turnover. We can handle the GST registration application as part of setting up your guest house.
Why do I need a feasibility study for a guest house?
A feasibility study tests whether the guest house can cover its costs and repay financing, using realistic occupancy, room rates and running costs for your island. It protects your own savings and gives lenders the evidence they look for when assessing an application.
Can you help expand an existing guest house?
Yes. We assess the case for adding rooms or upgrading facilities, prepare updated projections, and apply for expansion financing, such as SME Digital's Guestroom Financing, where it fits your plans.
Last reviewed 6 October 2026. Requirements change; we confirm the current rules with you before any application.