Filters
LocationSouth Africa, North West

Sector - Accommodation

Asking Price
R8,085,000
Monthly Profit
R 140,146
Asset Value
R 3,050,000
Stock Value
R 0
Yearly Net Profit
R 1,681,753

Summary

Guesthouse consisting of two full homes. 20 guest rooms, licensed bar and restaurant facilities

Give me more information

Fully describe the business's activities?

This is a Guesthouse in Orkney, North West Province that is well established with stable source of income from mining customers, the business is well known as it has been trading for 18 years and have developed a value proposition that continues to favour their target customer segments, and is managed by Husband and Wife team.

What competition exists?

There are other Guesthouses in town, yet this guesthouse is the most established with the longest history

What are the current foundation revenue streams of the Guesthouse?

The business revenue streams consist of "Regular Mining Guests" that provides about a 1/3rd of the monthly revenue, together with this foundation revenues the guesthouse also have a constant flow of other guests that have short terms stays in Orkney for both business and pleasure. Meal services such as Breakfast, Lunch and Dinner is provided as well as "Lunch packs" for guests that requires this service.

What additional revenue streams are generated by the Guesthouse?

There is a fully licensed Bar on the premises, which currently generates R130k gross revenues, the Guesthouse owners rents this bar to a 3rd party at R12,000 per month.

The Guesthouse infrastructure and setup?

The business consists of a number of parts that make up the whole in terms of the assets, these are as follows:
#1. House 1, which is a 3 bedroom house as well as flatlet with 2 rooms - This premises has 10 rooms for guests that are fully equipped with own bathrooms, braai facilities for guests as well as ample parking, most of the rooms are equipped with air conditioners whilst the remainder have fans placed in each room for the warmer months of the year. The premises is supplied with single phase prepaid power. The yard is large with ample garden and possible future expansion space.

#2. Attached to House 1 is an area that currently serves as fully functional bar and restaurant, with a large kitchen, Lapa and Pizza oven

#3. House 2, which is a 3 bedroom house with double garage, pool, large workshop and carport for three vehicles or caravan. Flatlet with 2 bedrooms, carport and garden, There are 10 guest rooms with similar amenities for guests as found in House 1. There is a large reception lounge, Self help kitchen for guests as required, 3 phase prepaid power. There is already a foundation laid for either 2 room flat or alternatively a Lapa area.

All the premises are fully covered under different liquor licences, the bar area liquor license can also be used for outside field events. The other assets, for which an inventory list is available, consists of all the furniture, bedding and equipment that would be expected from a Guest House with this extended history.

What are the main assets of the business?

The business consists of a number of parts that make up the whole in terms of the assets, these are as follows:
#1. House 1, which is a 3 bedroom house as well as flatlet with 2 rooms - This premises has 10 rooms for guests that are fully equipped with own bathrooms, braai facilities for guests as well as ample parking, most of the rooms are equipped with air conditioners whilst the remainder have fans placed in each room for the warmer months of the year. The premises is supplied with single phase prepaid power. The yard is large with ample garden and possible future expansion space.

#2. Attached to House 1 is an area that currently serves as fully functional bar and restaurant, with a large kitchen, Lapa and Pizza oven

#3. House 2, which is a 3 bedroom house with double garage, pool, large workshop and carport for three vehicles or caravan. Flatlet with 2 bedrooms, carport and garden, There are 10 guest rooms with similar amenities for guests as found in House 1. There is a large reception lounge, Self help kitchen for guests as required, 3 phase prepaid power. There is already a foundation laid for either 2 room flat or alternatively a Lapa area.

All the premises are fully covered under different liquor licences, the bar area liquor license can also be used for outside field events. The other assets, for which an inventory list is available, consists of all the furniture, bedding and equipment that would be expected from a Guest House with this extended history.

Strengths?

- This business is well established and as an approved vendor from mines in area has a stable income that could be built upon.
- The business is easy to run with very limited staff numbers required

Weaknesses?

- The current owners health is limiting the aggressive marketing that could lead to increased revenues in the region

Opportunities?

- Expansion of premises to increase room capacity
- Focus on Bar and Restaurant area that could create additional revenues

Threats?

- Covid lockdowns remain a threat for this type of business

What is the reason for the sale?

Owners wish to retire and deteriorating health plays a role in decision as well

Location

Contact | Enquire

Frans

Frans Joubert

LocationSouth Africa, North West

Preferred method of contact

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