Ref. No - BFS935806

LocationSouth Africa, Gauteng

Ref. No - BFS935806

Sector - Accommodation

Asking Price
R1,100,000
Monthly Profit
R29,034
Asset Value
R 309,637
Stock Value
R 40,000
Yearly Net Profit
R 348,406

Summary

This hotel makes money from renting out rooms, the bar with live music, gaming machines and pool tables as well as annual increasing revenue from the cell phone towers

Give me more information

Fully describe the business's activities?

This is a hotel with 20 rooms spread over two floors. The business has a restaurant that can be used for functions, 2 bars, 2 pool tables and 5 gambling machines for extra revenue.

How does the business operate on a daily basis?

Clients phone in or arrive at the hotel needing accommodation. Rooms are then allocated for the desired period.

Bar and restaurant opens to the public daily with gaming machines and pool tables.

What Advertising/Marketing is carried out?

Facebook
Regulars
Word-of-mouth

What competition exists?

There isn't any other hotel in the area that has been around as long as this hotel has been. Similarly, there is no other direct competition in the area.

How could the profitability of the business be improved?

Assertive marketing for:
- Venue for a variety of functions
- Sunday Family Lunch Special in the Dining Room area
- Additional entertainment evenings, e.g. Bingo, Quiz nights, Poker Nights
- Additional gaming machines
- Outside catering for individual and group functions

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

1 x Housekeeper - 23 years
5 x Kitchen and bar staff averaging 8 years in employment, with 1 on 2 years
2 Site managers - 3 and 9 years

Do any have management potential?

Yes 1, maybe 2.

How involved is the Owner in running the business?

Owner is at the business on a daily basis - this is an owner managed and run business.

When does the current lease end?

December 2025.

The landlord has indicated that he is willing to sign a long lease with the new owner

What are the trading hours?

Daily from 10:00 to 04:00 to cater for bar and liquor licence

What are the main assets of the business?

Business doesn't have big assets. The main assets are items you would find in a hotel room, dining room, kitchen and bar

Strengths?

Fixed monthly revenue from Cell phone tower rentals.
Regular patronage from locals
Regular meeting place for various associations
Flexible offerings

Weaknesses?

Older building but aimed at the lower LSM's
Recent financial results show impact of weaker economy
No active social media presence
Can't make bookings online
The bathrooms are not en-suite

Opportunities?

Assertive marketing for:
- Venue for functions
- Additional entertainment evenings
- Additional gaming machines
- Outside catering

Threats?

Economic downturn and general inflation

What is the reason for the sale?

Owner retiring
Location

Contact | Enquire

Rudi

Rudi White

LocationSouth Africa, Gauteng

Preferred method of contact

Logo
Access to the number one business broking tool to get your business sold.
We've got you covered!

We offer an innovative and intuitive

solution for selling your business, franchise and premises

Promote

Promote

your business for sale

Advertise

Reach

the right audience

Gain

Gain

more exposure

Sign up for our Sellers' Portal Affordable monthly packages
Man

Knowledge Bank

Get the latest information, valuable tips and share in the professional knowledge of business experts on selling or buying a business

Buyers

What Are The Advantages Of Buying An Existing Business

What Are The Advantages Of Buying An Existing Business

10 Questions To Ask When Buying A Business

10 Questions To Ask When Buying A Business

The Transformative Power of Business Coaching: Unleashing Success and Growth

In today's competitive business landscape, entrepreneurs and professionals are constantly seeking ne

Sellers

Unlocking Opportunities: Selling Kindergarten, Pre-School and Early Childhood Development Centre Franchises Online with Business for Sale

We're excited to announce our latest endeavour aimed at fostering growth and expansion in the early

Empowering Franchisors: A Refined Approach for Exponential Sales Growth

Empowering Franchisors: A Refined Approach for Exponential Sales Growth

6 Steps To Selling A Small Business In South Africa.

6 Steps To Selling A Small Business In South Africa.