Fully describe the business's activities?
4 STAR GRADED Guest House registered with the Tourism Grading Council and local Municipality. The guest house is highly recommended , supported by regular guests away on business , representatives of companies , tourists en route to their destination of choice. Bed & Breakfast included , Supper & lunch boxes on request. Rates are affordable and occupancy rate is stable.
How long has the owner had the business?
Since 1st April 2005 and currently operating. The Owner invested much into the property development & general maintenance. A generator was installed on the premises with a 14KVA usage in case of possible power outages. 6 Solar panels mounted on electric geysers with time switches, 3 x 5000 liter water storage tanks with 2x pressure pumps for extra usage in time of need . 24 hour alarm system with motion sensors & lighting all around the guesthouse.The seller ensures at all times that the guests are well taken care of.
How does the business operate on a daily basis?
Bookings are made via email or telephone. The rooms are well cleaned by the domestics , laundry service is available on request ,WI FI service to complete business tasks. Regular clients often return due to the 5 star service , serene surroundings , home cooked meals and comfortable beds to sleep on.
How are the clients attracted to the business?
Warm hospitality & peacefulness . The owners pride themselves with the beautiful serene "natural " surroundings including a dam view providing calmness , gardens , living space , luxury rooms and excellent service. There are 6 rooms each one named after a bird specie from the area. Bird lovers can enjoy nature at its best .
What Advertising/Marketing is carried out?
Word of mouth is the main marketing tool . Sign posts that are visible from the CBD area and major travel routes. All 4 entrances into the town advertise the guest house on approved municipal brown advertising boards. Social media , websites such as travel ground , trip advisor , facebook & advertising agencies. The guest house owns a personalised website address . The Owner adds a personal touch by handing to the guests a branded note book & tissues. This is an excellent idea for advertising .
Does the business have any contract work?
What competition exists?
The only GRADED guesthouse in the area. Service and quality are of a high standard .
What are the seasonal trends?
Constant throughout the year - with January and december slightly quieter.
Is the business VAT Registered?
Not registered for VAT
Are there up-to-date Management Accounts available?
Yes. The owner is very accurate with the buying . They however combine the groceries with cleaning on one slip when purchasing at the store. Therefore an estimate was provided and with a due diligence one can confirm the actual buying of goods for breakfast only versus cleaning materials.
What Balance Sheet and Income Statements are available?
2015 / 2016
What percentage of the business is cash/credit?
10% Cash 90% EFT and credit cards
What is the age analysis of the debtors book?
The business operates on a pre payment system : pay before you stay Some clients ( trusted travel agencies) have a 30 day account.
How could the profitability of the business be improved?
Profitability : 1. To increase the occupancy rate 2. More advertising 3. Open a coffee shop with home made baked cakes & muffins 4. The big store of (5m x10m ) can be easily transformed into conference facilities.
What is the total staff complement?
4 Staff members
Give a breakdown of staff/ functions/ length of service?
1x lady - Admin & food preparation 2x Ladies - Housekeeping 1x Gardener
Do any receive special perks or incentives?
Meals per day & cash weekly incentives when rooms are cleaned as per grading standards.
Are they on contract?
Month to month
How involved is the Owner in running the business?
The owner operates the business by delegating the work. She manages the daily tasks and housekeeping . Purchasing and bookings . The owner prepares the guest house to be in line with Grading standards. Ensures that the linen and mattresses are of top quality . The guest house offers comfort and pleasant environment. The owner adds a personal touch of service by addressing clients needs and advertising one on one marketing approach.
When does the current lease end?
Owner of property
What are the trading hours?
Trading hours : Monday to sunday 24 hours with a cut off at 10pm unless there is extenuating circumstances The owners reside on the property to make it easier for the management of guests & services. The building is designed in such a way that when family visits or friends the living space can be extended due to interleading doors.
What is the square meters of the business?
Total property size is 2011m2 Buildings occupy size of 664m2
Do you require a licence?
Health Certificate Grading Certificate & Tourism Grading Council Recognition. AA & Tourism Certification.
What are the main assets of the business?
See Asset list per guest room Property is the main asset Linen on beds & extra linen , curtains , towels are all included
Are any items not included in the sale?
Personal items of sentimental value Furniture in the owners living area
What is their overall condition?
Excellent . Well maintained
Do any require repairing?
Ongoing repairs is a must and keeps the guest house in perfect condition.
How have they been valued ?
Insurance Value & property Value market value is higher than selling value
Are they presently insured?
B&B insure - specific guest house insurance.
Strengths 1. Every room has a private entrance , lock up garage and view of dam. 2. solar panels for geysers , enough storage water & generator 3. Motion lights around the house 4. excellent view and hiking trails 5. Wi fi and signal booster 6. well trained staff & management
Weakness: Ramp in front of garage & store not paved
Opportunities 1. Bird watching in garden 2. Bridal photos 3. Coffee shop on the existing veranda & underneath trees 4. Extra space for hobby or woodwork or 2 nd business 5. Conference facilities in large store (5mx10m)
What is the reason for the sale?
Owners are of retirement age . Desire to settle in retirement village .
Why is this a good business?
The successful buyer will be a person who has another income or pensioner and would like to enjoy the benefits of a guesthouse on the property. There is a large store on the premises (10x5m) with a basin & shelves making it an ideal place for woodwork , hobby, welding or changing it into conference facilities for which there is a huge demand.One part of the double office can be used for an extra bedroom, hobby or sewing because it has useful built in cupboards.
What is the price plus stock and the net profit?
R4.8 million - property value with all assets including the monthly income of the guest house.
Annual Turnover Amount between R 500 thousand and R 6 million