Fully describe the business's activities?
Prestigious award winning five star boutique 8 roomed hotel and spa. This is an Uber deluxe hotel facility providing accommodation in the tropical belt of KwaZulu-Natal nestled amongst palm and giant Milkwood trees in overlooking the Indian Ocean. A home away from home guest experience for the most discerning local and international business executives and leisure travelers.
How long has the business been established?
Originally built as a holiday home in the early 1960's and remaining as a residential dwelling until purchased and developed into a boutique hotel offering. The now known prestigious award winning Hotel , in its current form , was opened in November of 2003.
How long has the owner had the business?
Property has been owned by seller since 2002 and opened as a hotel in 2003
How does the business operate on a daily basis?
24/7 offering of accommodation and deluxe Spa services
How are the clients attracted to the business?
Via traditional (Global Distribution Systems) Booking.com , Local Sales and Marketing activities to Travel Agent contracts and Tour Operator preferred rate contracts. Spa facility has a regular return day on day clientele base that compliments the hotel guest business generation. Well established and very high internet ranking that focuses its efforts on both corporate and leisure travelers locally and internationally.
What Advertising/Marketing is carried out?
Registered with booking.com , Tripadvisor.com / southafricasun.co.za and Interactive web site
Does the business have any contract work?
Contract rates with Corporate clients, Travel Agents and Special Tour Operator discounted rates.
What competition exists?
Only direct competitor is a large 5***** Hotel and hence the reason for positioning this boutique ultra luxurious offering to fill a very present gap in the market.
What are the seasonal trends?
Very limited seasonality due to diverse mix of markets and customers being a total cross-section of local and international, business and leisure. For this reason, there is only an annual rate, not a seasonal one applied
Key Performance Indicators
Hotel Occupancy 83% Average Length of Stay 2.5 nights
Is the business VAT Registered?
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
90% prepaid and or on departure with small amount of preferred account status for certain clients up to 30 days
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
There is an opportunity to further develop additional rooms with an already established operating platform with minimal operational cost association.
Is Seller finance available and for what amount?
Who is the bookkeeper/Accountant?
BDO - Durban
Give a breakdown of staff/ functions/ length of service?
Full descriptive will be provided during Due Diligence process 3 x Management & Admin 4 x Spa 2 x Reception 4 x Housekeeping 2 x Maintenance & Grounds 2 x Kitchen
Do any receive special perks or incentives?
Staff accommodation allowance provision
Are they on contract?
Do any have management potential?
How involved is the Owner in running the business?
Daily on site oversight of Spa and Hotel operations
Quick Property Details
Land Size = 3,077m2 Building Size = 944,7m2 Permitted F.A.R (0,35) = 1,077m2 Existing F.A.R (69,9%) = 753m2 Permitted Coverage( 33.3%) = 1025m2 Existing Coverage (50,8%) =521m2 Zoning = Special Residential Property Category = Business & Commercial
What are the main assets of the business?
Boutique Hotel Property
Are any items not included in the sale?
Exclusion list of all FF&E an
What is their overall condition?
Do any require repairing?
How have they been valued ?
Per asset register and balance sheet depreciated current value
Unique locations with "uber luxury" finishes , established strong return business, excellent corporate - leisure and local international clientele mix. Iconic and award winning establishment ,
Rates need to stay market correct so limited ability to exercise increments in keeping with operational costs to GOP% margins
Further development opportunities to increase room capacity
Luxury accommodation can be the first reduction in corporate spend so rates critical to be on par with market trends and Market Penetration Indicators
What is the reason for the sale?
Owner is diversifying their business Interests
Why is this a good business?
THIS MULTI-AWARD WINNING BOUTIQUE HOTEL HAS BECOME AN UNIQUE INVESTMENT OPPORTUNITY. Along the tropical belt of KwaZulu-Natal, nestled amongst the palm and giant Milkwood trees lies Teremok Marine, a luxurious five-star boutique lodge whose name translates from the Russian word for 'little hideaway'. Boasting a rich history, this multi-award winning establishment has been operating successfully since November 2003, and is rated as No. 1 Hotel in Umhlanga (and in KwaZulu Natal) on TripAdvisor. Teremok presents willing buyers an unique investment opportunity offering prime real estate and a going business concern, with occupancies in excess of 80% over the last 24 months. A feast for the senses, all of the eight suites are unique in design, layout and feel with small subtleties such as individual scent, mood-music and evening confectionary all creating an enchanting atmosphere. Each suite has an extra-length bed (king size or twin), handcrafted ceiling fan, air-conditioning and a private balcony. The open plan bathroom has a large rain-dance shower, freestanding bath, double basins and separate toilet with bidet. Extras include a home entertainment system with LCD screen and DVD player (a large library of DVDs is available), an iPod docking station, as well as complimentary WiFi throughout. The peace and seclusion of the airy dining room provides the feeling of being in a modern day tree house. The open-plan kitchen lures guests in for breakfast and Teremok has built an enviable reputation for their home-made, freshly prepared fare. Open to an outside clientele, the Spa, open seven days a week, has highly qualified master therapists, and offers a full range of face and body treatments available using the internationally acclaimed product lines Juliette Armand, Mio and Dermalogica. It purposefully incorporates only two individually themed treatment rooms in order to offer a heartfelt bespoke experience, as well as a relaxation area where guests are encouraged to enjoy a cappuccino and relax before or after their treatment. The sale of this establishment includes all transferrable licenses and the business as a going concern. Vetted, interested parties may conduct due diligence after signing a non-disclosure agreement.
What is the price plus stock and the net profit?
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Annual Turnover Amount between R 500 thousand and R 6 million