Fully describe the business's activities?
This opportunity is a self-catering lodge in the South Coast of KZN. Situated metres from the surf in, a charming, informal and secure self-catering holiday hideaway carved out of the lush tropical vegetation of the Admiralty Reserve. The lodge is made up of 14 rooms with secure parking for 14 vehicles. There is parking from both entry roads enabling guests in the back units to park their vehicles close to their unit. Main entertainment area is made up of our Potjie Boma with undercover walkway to our double lounge/reception and pool bar overlooking the enclosed swimming pool and outside shower. The lodge does not have a liquor licence as not owner managed, however potential to grow the business by applying for a liquor licence. The main kitchen is fully equipped with semi-industrial gas hob and electric oven, fridge and full cupboard/storage facilities with caesarstone counter tops and direct access to the bar. The units are made up of a total of eight 2 sleeper Studios and six 4 sleeper Casitas. Six of the units can be made up into 2 bedroom Cabanas as there is a foam insulated double door between each Casita/Studio thus allowing for a larger family unit or can be closed and sold as individual units. One unit made of up 3 rooms, Cabana upstairs with a Studio on garden level. The second Studio is a free-standing Thatch unit mostly used by our honeymooners. Total capacity: 28 adults in 14 rooms + 12 children u/12 on sleeper couches in the living rooms of the Casita/Cabana = 40 guests Room configuration: 10x rooms can be made up as either Twins (2x single beds) or King beds using mattress converters. 4x rooms have queen size beds only.
How long has the business been established?
+- 15 years.
How long has the owner had the business?
The owner purchased the lodge in 2009.
How does the business operate on a daily basis?
The owners reside in Gauteng and operate the lodge with assistance of a manager.
How are the clients attracted to the business?
Kwa Zulu Natalâs best kept secret; a charming, informal and secure self catering holiday hideaway carved out of the lush tropical vegetation of the Admiralty Reserve. From the resort, a shaded pathway through bush inhabited by duiker and dassie leads to golden sands and the warm blue ocean where schools of dolphin frolic in the waves and whales drift lazily by. The area enjoys year round sunshine and the balmy weather continues throughout the winter. Safe bathing and surfing, fabulous fishing and diving, stretches of unspoilt beach, restaurants, attractions and friendly locals make our little piece of paradise the perfect South African tropical holiday destination.
What Advertising/Marketing is carried out?
The business has a website, which is linked to various other travel and accomodation gateways.
What competition exists?
Various other holiday accommodation is found in the area.
What are the seasonal trends?
The lodge is very much all year round, however busy periods are in the summer months and holiday periods.
Is the business VAT Registered?
What Balance Sheet and Income Statements are available?
None on file. However a income and expenditure calculation is in file and further information will be made available for due diligence.
What percentage of the business is cash/credit?
Most payments are made via EFT.
How could the profitability of the business be improved?
More owner involvement in the operation. Possible expansion, upgrade and application for a liquor license.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
3 Service staff - 15 years Manager - since 2012 1 extra cleaning - 12 years 1 - Laudry lady - 5 years 1 gardener - 3 years
How involved is the Owner in running the business?
Very little hands on operation.
What is the square meters of the business?
The erf size is 4050 M2. +- 458sm under roof.
Are any items not included in the sale?
Items included as per asset list.
What is their overall condition?
How have they been valued ?
Estimated market value.
Are they presently insured?
Well established, prime location in the South Coast and walking distance from the beach.
Required a hand on owner and regular maintenance. No currently exploring the opportunities in a possible restaurant, events, golf tours, bar etc
Perfect opportunity to retire at. Ideal investment opportunity in the South Coast. Well established and currertly run with the assistance of a manager. More owner involvement would increase turnover and reduce operating costs.
What is the reason for the sale?
The owners reside in Gauteng and involved in business in JHB. They find is difficult to give the attention required and for what the opportunity deserves.
Why is this a good business?
Ideal opportunity for an investor or a couple looking to retire at the coast with a return.
What is the price plus stock and the net profit?
R4 750 000
Annual Turnover Amount between R 500 thousand and R 6 million