Summary
Established nine room 4 star guest house in popular and upmarket area
Give me more informationFully describe the business's activities?
All 9 suites in the Guest House are lavishly decorated with individual touches which make each suite unique.
The Guest House boasts 5 garden suites overlooking the swimming pool and outside bar/gazebo, each with its own entrance, and a further 4 suites on the first floor of the Lodge with sweeping views over substantial, manicured gardens.
Suites include twin or king size beds dressed in 100% cotton linen, DStv, Wi-Fi connectivity, tea/coffee trays, air-conditioning, with soft fluffy bath robes and hair dryers on request.
The 119 square meter conference centre can comfortably accommodate 40 delegates seated around tables or up to 80 delegates cinema style. This facility offers Wi-Fi connectivity and data projectors in addition to the standard conference centre requirements.
The Guest House has 23 parking bays as per the approved plans but it can accommodate up to 40 motor cars if necessary.
It comes as no surprise that this Guest House has a four-star grading.
How does the business operate on a daily basis?
The Guest House also takes group bookings on weekends.
Occupancy rate per month is 85% to 90% for Monday to Friday mornings only.
What Advertising/Marketing is carried out?
The Guest House also has an active website
What Advertising/Marketing is carried out?
The Guest House also has an active website.
What competition exists?
How could the profitability of the business be improved?
The Guest House is closed between 18 December and 10 January each year to enable the owners to travel. The potential over the Christmas period in huge and the sheer number of enquiries for this period attests to this potential. The owners estimate that they could earn R1300 per room shared per day for bed & breakfast. This equates to an additional R11 700 per day (R1 300 x 9) for up to 24 days.
The owners’ 4-bedroom cottage could be let out as a self-catering unit during the period they are away travelling but this has not yet been done. The owners estimate that if let out it could earn around R6 000 per day for the peak period.
The new owner could let out the 4-bedroom cottage all year round if they elect not to stay on the property.
Weekends are also potential money spinners and the 9 bedrooms could produce an income of up to R25 650 per week based on R950 per room for singles; doubles would produce more income.
The conference centre is not advertised anywhere so it is currently used by existing corporates that know about it and who use it regularly. The price is R395 per delegate per full day conference. The venue allows for breakaway sessions and the surrounding gardens are perfect for team-building events, hosting product launches, baby and bridal showers, etc.
In addition, a number of Wellness and/or Life Coaches use the conference centre for morning meetings. The owners estimate that the conference centre could increase by R10 000 to R15 000 per week
How could the profitability of the business be improved?
The Guest House is closed between 18 December and 10 January each year to enable the owners to travel. The potential over the Christmas period is huge and the large number of enquiries for this period attests to this untapped potential. The owners estimate that they could earn R1300 per room shared per day for bed & breakfast. This equates to a potential additional R11 700 per day (R1 300 x 9 rooms) for up to 24 days.
The owners’ 3-bedroom cottage could be let out as a self-catering unit during the period they are away travelling but this has not yet been done. The owners estimate that if let out it could earn around R6 000 per day for the peak period.
The new owner could let out the 3-bedroom cottage all year round if they elect not to stay on the property.
Weekends are also potential money spinners and the 9 bedrooms could produce an income of up to R25 650 per week based on R950 per room for singles; doubles would produce more income.
The conference centre is not advertised anywhere so it is currently used by existing corporates that know about it and who use it regularly. The price is R395 per delegate per full day conference. The venue allows for breakaway sessions and the surrounding gardens are perfect for team-building events, hosting product launches, baby and bridal showers, etc.
In addition, a number of Wellness and/or Life Coaches use the conference centre for morning meetings. The owners estimate that the conference centre could increase by R10 000 to R15 000 per week.
Total potential additional income = R1 880 400
The owners would like it to be known that regular use of the conference centre will require the consent of their neighbours.
Give a breakdown of staff/ functions/ length of service?
Two staff members are gardeners/handymen who are constantly doing preventative maintenance all around the property.
Do any have management potential?
Do any have management potential?
How involved is the Owner in running the business?
When does the current lease end?
When does the current lease end?
What are the trading hours?
What are the trading hours?
What are the main assets of the business?
Strengths?
Weaknesses?
Opportunities?
Threats?
What is the reason for the sale?
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