Summary

This historical hotel dating back to the 1800's is an opportunity to have a peaceful country lifestyle with big city income. Own you own refurbished building with shops and operate the hotel with 18 rooms in a beautiful small Karoo town on the busy N1. With bed night occupancy that tripled in the last 3 years during the recession this is a gem. A rare opportunity

1. History Background

Fully describe the business's activities?

This historical hotel dating back to the 1800's is an opportunity to have a peaceful country lifestyle with big city income. Own you own refurbished building with shops and operate the hotel with 18 rooms in a beautiful small Karoo town on the busy N1. With bed night occupancy that tripled in the last 3 years during the recession this is a gem. A rare opportunity

How long has the business been established?

Since the 1800's with a rich history

How long has the owner had the business?

4 years

What steps are in place to solve 'load shedding' problems?

Never had experienced load shedding beforein the town, that is a big city problem

2. Present Market

How does the business operate on a daily basis?

Owner ru

How are the clients attracted to the business?

Word of mouth is the main source. Advertising on maps, websites, social media like Facebook and Twitter and natural position close to main road.

Does the business have any contract work?

On the SAPS listing, various Government Departments, like the department of Health, various Travel Agencies.

What competition exists?

No other HOTEL in the town, although there are other establishment. This is the largest single establishment with most rooms. The town has 1 Inn,Bed and Breakfasts. They do work together with the competition for larger parties and peak times.

What are the seasonal trends?

Peak season is in December (Holiday Travelers) Slowest is in July and August.

3. Financial

Is the business VAT Registered?

No

Are there up-to-date Management Accounts available?

Yes

What Balance Sheet and Income Statements are available?

Up to February 2011

What percentage of the business is cash/credit?

Most clients pay up front to stay by direct deposit. Cash on departure. Some government departments have 30day terms.

What is the age analysis of the debtors book?

Normal trade terms, and no outstanding debts

How could the profitability of the business be improved?

Various opportunities Exist. Add beauty and health for a spa breakaway. Convert it to a retirement village. Expand the hotel by acquiring more space for extra rooms. The in house restaurant currently focus on hotel guests, expand that to cater more for external guests.

Is Seller finance available and for what amount?

No

4. Staffing

What is the total staff complement?

Apart from the owners 9 staff members

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

3 Cleaners / Laundry Ladies, 2 Kitchen Staff, 1 Barman, 2 Gardeners, 1 Receptionist. Some of the staff

Do any receive special perks or incentives?

No, hourly and weekly paid

Are they on contract?

Yes

Do any have management potential?

No

How involved is the Owner in running the business?

Hands on

5. Premises

When does the current lease end?

Property included in the sale

What are the trading hours?

Normal trading hours for a hotel, but normally 7:00 - 21:00

What is the square meterage of the business?

1428m2 + 2556m2 the Erven. Buildings total 1791m2 and garages of 230m2

Do you require a licence?

Yes

6. Assets

Is a full asset list on file?

Yes, available to approved buyers

Are any items not included in the sale?

No

What is their overall condition?

Very good

7. S.W.O.T. Analysis

Strengths?

Along N1. Largest hotel in town and closest other is far away. Most beds in town, suites available for longer term accomodation

Weaknesses?

Restaurant can be open more often

Opportunities?

Expand the food and restaurant area. Convert the establishment to a Country Spa

Threats?

Non perceived

8. Reason For Sale

What is the reason for the sale?

Owners are retiring to drive overland through Africa

9. Conclusion

Why is this a good business?

Solid income in a small town with allows for a very good quality of life