Fully describe the business's activities?
4 Star Exclusive 12 Room Boutique Hotel in Mpumalanga with conference facilities. It is the only hotel in the immediate area and has massive expansion potential. Plans to increase the rooms to 34 and build a spa has already been approved. The hotel is conveniently located in town with stunning views of the Drakensberg in total privacy.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
Accomodation with meals are provided to mainly business tourists. Most guests are from Government and senior management of mines
How are the clients attracted to the business?
The business is registered as a vendor with most big mines in the area. Word of mouth referrals. Adverts on most travel web sites including Portfolio Collection, Trip Advisor, Travel Ground & Lekkerslaap. Travel Agents Listing in local business directory
What Advertising/Marketing is carried out?
Adverts on most travel websites including Portfolio Collection, Trip Advisor, Travel Ground & Lekkerslaap. Travel Agents Listing in local business directory
Does the business have any contract work?
No , but with the correct partner ( co-owner ) there are possibilities
What competition exists?
There are a number of Guest Houses and B&B's in the area but there are no hotels and nothing of a similar standard in the immediate area
What are the seasonal trends?
School Holidays are normally quiet as the business focus on the business traveler. Opportunity to focus on the holiday traveler during these quite times exist.
Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
Yes till September 2017
What Balance Sheet and Income Statements are available?
Audited 2015 Un audited February 2016 Management Accounts to September 2017
What percentage of the business is cash/credit?
70% Cash 30% Travel agents on 30 Day Accounts
What is the age analysis of the debtors book?
Mostly 30 Days
How could the profitability of the business be improved?
Marketing to the weekend, holiday and overseas travellers. BEE partner will justify the favourable rating and will ensure that Amani is the only BEE rated Guest Lodge in town Implement the expansion program to increase the rooms to 34 and build the Spa. This will be the key to much larger profitability as any further rooms will directly add to profit Currently only 10 rooms are used for guests whilst 2 rooms are used as owners accommodation. These rooms can also be used for guests.
Is Seller finance available and for what amount?
Who is the bookkeeper/Accountant?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
1 Admin/bookeeper 2 Kitchen Staff 3 Font Desk 3 Cleaners 1 Gardener
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
No, The owners wife is the manager and she runs the business In a partnership she will be available as manager
How involved is the Owner in running the business?
Only marketing and strategy development. Owners wife is responsible for daily operations
When does the current lease end?
The business owns the property
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
What is the square meters of the business?
Buildings 1057 sqm Land 9512 sqm
Is a copy of the lease available?
Do you require a licence?
Liquor Licence Food Hotel Grading 4 star
What lease deposit and/or other surety is required?
Surity for the owner finance
Location of premises
The business is located on the edge of town with a view towards the Strekspuit Kloof and the Longtom Pass It borders the Mpumalanga Parks Board land and it is unlightly that any further developments will take place is that immediate area
What are the main assets of the business?
Land and Buildings consisting of a 10 bed 4 star hotel with conference facilities Furniture and Fittings Kitchen equipment
Are any items not included in the sale?
Only the owners own belongings - this will be pointed out to the buyer
What is their overall condition?
Assets are fairly new and well maintained
Do any require repairing?
Only normal day to day maintenance required
How have they been valued ?
Land & Buildings at cost All other assets valued at book value
Which assets are on lease/HP and with whom?
No HP or Leases The property is bonded to Absa and the IDC
What are their settlement amounts?
HP / Leases - Nil Absa R 2 417 745 IDC R 258 760
Will Seller settle or Buyer to take over?
The bonds will remain in the Pty Ltd
Are copies of agreements available?
Are they presently insured?
It is the only boutique hotel in the immediate area Excellent reviews on various travel websites including Trip Adviser Listed onPortfolio Collection Privacy in town with a view Conference facilities Stable and committed workforce Vendor Lists Approved plans for additional rooms and spa will open up larger profitability
Capitalise on the holiday market Overseas travellers Development potential
Municipal Infrastructure such as electricity, roads and water The macro economic conditions
What is the reason for the sale?
The owner still has a passion for the industry , but is looking for a partner / investment partner to cover debt and position the business for expansion to unlock the full potential of the business
Why is this a good business?
It is established with a good name. Assets are well maintained and there is tremendous expansion potential
What is the price plus stock and the net profit?
R 3 800 000 for a 51% share in the Pty Ltd
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