Ref. No - BFS934953

LocationMozambique, Mozambique Areas

Ref. No - BFS934953

Sector - Accommodation

Asking Price
R4,150,000
Monthly Profit
R66,217
Asset Value
R 4,190,000
Stock Value
R 0
Yearly Net Profit
R 794,600

Summary

Enjoy a wonderful life style by purchasing a beautiful beach resort in Mozambique on a payment plan with the Owner. Situated on a lagoon with the ocean behind. A popular water sports destination including boat trips, quad biking, fishing and numerous other activities most of which equipment is available for hire. The accommodation consists of self catering units and luxury safari tents. If a Buyer purchases the Company he/she can obtain a work permit within a short period. With the work permit in the passport the Buyer can enter and exit the country whenever they wish. OR, the Purchaser limits the stay in Mozambique for 30 days on each entry which many South African passport holders do. A work permit must be in place for five years, thereafter an application can be submitted to change it into a permanent residence permit.

Give me more information

Fully describe the business's activities?

Coastal resort with various types of accommodation, many water sports and beach sports. The accommodation consists of:
2x En-suite units (max 2 people) + kitchen, bathroom, private garden; patio and braai facilities;
5xTwo bedroom glamping units (max 4 people per unit) + kitchen, bathroom, garden, patio, braai facilities;
1x Manor House (max 8 people) + large kitchen, braai facilities, bathroom, private bar;
10x camp sites (max 8 people per camp site) for campers and/or caravans.
Electrical points around campsite.
Communal Bathrooms 4 Showers, 4 Toilets +
2nd communal Bathroom facility for campers.
Guests are received by Owner or staff.

How does the business operate on a daily basis?

The seller /owner is involved with the electronic booking system, financial management and admin
2 staff members (a cleaner and a gardener: both have been with the resort since commencement)
A lodge manager (Staying on site)
Temporary staff are employed in high season.

What Advertising/Marketing is carried out?

Facebook specials, Instagram and web listings

What competition exists?

There are similar lodges but the business' facilities are more presentable and better priced. Prices are reviewed weekly based on what other resorts in the area are offering.

How could the profitability of the business be improved?

Introduce a children's park.
Extend restaurant hours.
Extend bar hours in high seasons

Give a breakdown of staff/ functions/ length of service?

1. Front of house cleaner and reception - length of service 12 years.
2. Gardner - length of service 12 years.
3. Lodge manager

Do any have management potential?

The staff have limited management potential to the extent that they can run the day to day business effectively.

How involved is the Owner in running the business?

100% with electronic bookings and guest questions;
Owner visits once every 40 – 60 days to deliver repairs & maintenance supplies, food, other general items and to inspect and have staff meetings.

When does the current lease end?

A 50 year Mozambique DUAT lease was renewed in 2020.

What are the trading hours?

Guests are received and cell available 24/7.

What are the main assets of the business?

Furniture and fittings.
Bar equipment.
Bar furniture.

Strengths?

Well established and stable business with low overheads.
Competitive pricing.
Excellent reputation.
Multi-skilled staff.
Situated on a busy tourist route.

Weaknesses?

None perceived.

Opportunities?

Endless opportunities for a dynamic buyer, such as :
Host more frequent music shows/weekend concerts and weddings.
Hold recreational events and get involved in the tourist activities in the surrounding area.
Increase the restaurant menu and bar offerings to clients.
Open a tourism shop (could be sub-contracted to a tenant).

Threats?

No current threats.

What is the reason for the sale?

The Owner is focused on construction work and wants to invest more into SA business.
Location

Contact | Enquire

John

John Londal

LocationSouth Africa, KwaZulu-Natal

Preferred method of contact

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