Is a property valuation available?
The municipal value for this property is R1,740,000. It consists of 11 large en-suite double rooms. The business broker will provide a comprehensive valuation to serious and qualified buyers. There is an outstanding bond of +/- R1m on the property.
What Advertising/Marketing is carried out?
The business has its own web site and is part of a group of 4 guest houses in the same area. Repeat clients book for this well run and comfortable guest house. Hampton Court guest house, Auckland Park, Johannesburg, opened its doors in 2007. It offers accommodation in11 stylish en-suite bedrooms, tastefully decorated in crisp whites to combine charm with convenience. This guest house offers an extensive range of services for tourists and business travellers: breakfast, dinners, laundry, transport, wireless internet access, electric fencing and 24 hour security and full conferencing facilities. Rates: Single rate: R765.00 per room bed and breakfast Double rate: R490.00 per person sharing
Is the property being let by a letting agency?
The guest house is owner operated and forms part of a group of 4 guest houses.
Is the business VAT Registered?
The business forms part of a group of companies who are VAT registered.
Are there up-to-date Management Accounts available?
The seller provides monthly occupancy figures. Additional income figures for conference facilities, transport and extra meals for lunch and dinner is provided and on file.
What Balance Sheet and Income Statements are available?
Financial statements for the period ending 28 February 2016 are on file.
What is the age analysis of the debtors book?
Clients pay either by EFT or swipe at their credit card machine. Very little notes/cash is received.
Is Seller finance available and for what amount?
The seller is open to negotiations and a buyer will have an option to buy all 4 guest houses and the operating company.
How could the income of the property be increased?
Marketing to corporate clients to book for conferences where delegates need to stay in. This guest house is situated in between UJ and Wits Universities, next to SABS, Media 24 and Nedcare Rehabilitation Center where family members seek accommodation and transport.
What is the monthly rates and taxes payable to local authority?
Average of R11,940 is paid which includes rates and taxes, water, electricity and Pickitup.
How involved is the Owner in running the business?
The owner is 100% involved, there are managers in place who are responsible for the operations side of the guest house.
Do you require a licence?
Consent and zoning certificates are on file.
What are the main assets of the business?
The property and all the furniture and fittings.
Are any items not included in the sale?
The seller will provide a full asset register for due diligence and when a sales agreement is signed.
What is their overall condition?
The property and its assets are in good condition.
How have they been valued ?
The business broker will provide a comprehensive valuation report to serious and qualified buyers.
Are they presently insured?
The business and its assets are comprehensively insured.
Well run and established guest house with average occupancy of 68% for the last 12 months. Good return on investment of 23% and a buyer will recover his investment within 51 months. NPV, IRR and CAP rate is better than industry norms.
No real weaknesses are noted, other than service delivery by Eskom for load shedding.
Marketing to corporate clients to book for conferences with stay in facilities for the delegates.
No real threats are noted and forseen.
What is the reason for the sale?
The owner wishes to retire.
Why is this property a good investment?
Beautiful guest house in prime location with average net profit of R117,140 per month. ROI of 22% and a buyer will recover his investment within 55 months.
What is the asking price?
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