Within D=5 N=2 gauged supergravity coupled to hypermultiplets we derive consistency conditions for BPS domain walls with constant negative curvature on the wall. For such wall solutions to exist, the covariant derivative of the projector, governing the constraint on the Killing spinor, has to be non-zero and proportional to the cosmological constant on the domain walls. We also prove that in this case solutions of the Killing spinor equations are indeed solutions of the equations of motion. We present explicit, analytically solved examples of such domain walls, employing the universal hypermultiplet fields. These examples involve the running of two scalar fields and the space-time in the transverse direction that is cut off at a critical distance, governed by the magnitude of the negative cosmological constant on the wall.