Filters
LocationSouth Africa, Northern Cape

Sector - Accommodation

Asking Price
R7,000,000
Monthly Profit
R 14,251
Asset Value
R 3,285,149
Stock Value
R 0
Yearly Net Profit
R 171,009

Summary

This is a 4 Star Graded Guesthouse with Consistent Income

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Fully describe the business's activities?

This is a Guesthouse with two properties. There are 8 Rooms plus a flatlet - Pool area - 4 Star Grading - Beautiful gardens with Pool, Mini Chapel and Garden Functions area.

How does the business operate on a daily basis?

The Guesthouse is managed by husband and wife team.

What Advertising/Marketing is carried out?

The business is 4 star graded at Tourism. They are listed on major travel websites as well as their own website. Repeat business plays a natural advertising role. Google results when searching on Internet returns this Gusthouse as one of the top results with the highest user ratings.

What competition exists?

There are other Guesthouses in the area, mostly outside of town.

How could the profitability of the business be improved?

Functions can be expanded. Coffee shop and Tea garden can be reactivated in the garden area. The main house could be converted into additional rooms. Could explore offering restaurant type services and home meal deliveries in the area. Advertising on Facebook could increase exposure for the business as well as regular updates on the page providing more insights on services offered as well as the different rooms and infrastructure. Installation of Solar could decrease utility cost, Insurance fees could be reviewed.

How involved is the Owner in running the business?

The husband and wife couple is actively managing the business.

How involved is the Owner in running the business?

The husband and wife couple is actively managing the business.

Property Description

The property consists of two houses across two properties combined into single business. The property size is 2,453 square meters. The Guesthouse has 8 rooms, flatlet, all air conditioned and with En Suite bathrooms. Bar area, Pool with wooden deck, Mini Chapel, Garden area with Khoi Pond. Borehole water, Laundry room, Irrigation System, Fenced with Burglar bars, Security Cameras, Electric Fence.

What are the main assets of the business?

Besides the two properties the assets consists of furniture and fittings for the guesthouse, these are valued at R572k at used replacement value estimations by owners. The properties were valued using comparative studies in the area as well as professional valuations done prior. The guesthouse is across two properties, measuring 2,453 Square meters, some of the features includes a Borehole, Khoi Pond, Decked Pool Area, Bar, Braai Facilities, Air Conditioned Rooms, Small Chapel, En Suite Bathrooms, Irrigation System

Strengths?

The business has a well established customer base, is known in the area and returning customer base. The guesthouse offers a luxury feel and is 4 star graded.

Weaknesses?

The business is sensitive to Covid lockdowns. Increased electricity and utility fees could impact margins.

Opportunities?

By having greater advertising on especially digital channels, such as Facebook there could be positive impact on increased volumes into the business. The business can also explore offering additional services such as Tea Garden, Meal Services in the area.

Threats?

Covid Lockdowns will be the top of mind threat, yet the economy seems to have stabilised in this segment

What is the reason for the sale?

The owners are retiring and will be moving to their retirement home.

Ideal Buyer Profile

The Ideal buyer for this business would be a Husband and Wife team requiring a lifestyle town that offers a closer knot community and away from the City, yet requires a constant income that allows for a quality of life that allows for breakaway a few times in the years and life costs of above average, with a service outlook and customer relationship building as core of their outlook. Work from home/at home business.

Location

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Frans

Frans Joubert

LocationSouth Africa, North West

Preferred method of contact

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