Fully describe the business's activities?
Hannett's Place is a self-catering establishment that is well known for its great sea views, tropical garden and bird life. On a clear day you can watch the ships waiting to enter Durban Harbour. The ground floor self-catering unit consists of 2 bedrooms and 2 bathrooms of which one is on-suite. It can accommodate 6 or 7 guests and is wheelchair friendly. Safe undercover parking behind secure electronic gates is only ten meters from the entrance to the unit, with no stairs. It also boasts a private Jacuzzi, two braai areas, a well-equipped kitchen, lounge with full bouquet DStv and effective ceiling fans in every room.
How long has the business been established?
It has been in operation since 2014.
How long has the owner had the business?
How does the business operate on a daily basis?
The current owners of the property manage it.
How are the clients attracted to the business?
The unit is advertised on various websites with good results. Satisfied customers return repeatedly and word of mouth has also proven to be lucrative.
What Advertising/Marketing is carried out?
The unit is advertised on at least three websites. There is plenty scope for a new owner to increase marketing and advertising.
Does the business have any contract work?
What competition exists?
There is a B & B in the same street as well as various B & B's and self-catering units in and around the Ballito area, although few have similar views as Hannett's Place.
What are the seasonal trends?
The unit accommodates guests throughout the year although business increases during school holidays, Easter and the year end festive season.
Is the business VAT Registered?
No, turnover is less than R1m per year.
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Income and expenditure for the last four years is available on request.
What percentage of the business is cash/credit?
The majority of business is cash or credit card with deposits paid upfront.
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
The owners have another room that could be easily converted into a self-catering unit for two people, complete with kitchenette and bathroom. The cost of conversion could be recovered within one year. Additional marketing could also increase occupancy, especially during the quieter months.
Is Seller finance available and for what amount?
Who is the bookkeeper/Accountant?
The owners do their own books
What is the total staff complement?
Two, husband and wife.
Give a breakdown of staff/ functions/ length of service?
The owners have been involved since inception
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
How involved is the Owner in running the business?
The owners and fully involved in running the business.
When does the current lease end?
There is no lease because the property is owned by the sellers.
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
Trading hours are flexible and are determined by current bookings.
What is the square meters of the business?
Land size is 1 066m2 Buildings: Top level is 276.4m2, Ground level is 127.3m2. Total = 403.7m2
Who is the Owner/Landlord?
The owners of the business are the same people who own the property
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
What are the main assets of the business?
The entire property is for sale. It has six bedrooms, three on the top level and three on the lower level. The two bedroom self-catering unit is on the lower level, as is the additional room that can be converted into another self-catering unit. The current owners reside on the top level. All three bedrooms lead onto an extended balcony and have great sea views. The main bedroom boasts a magnificent on-suite bathroom. The large kitchen/scullery was replaced in the last 18 months. It also has its own laundry room that leads onto a double garage.
Are any items not included in the sale?
All household items not associated with the self-catering unit are excluded from the sale.
What is their overall condition?
Very good to excellent
Do any require repairing?
How have they been valued ?
The property has been valued on the basis of current market values for the area.
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
The business has built up a reputation for excellent hospitality and value for money and the sea views are great.
No perceived weaknesses.
There is potential to convert an additional bedroom into an income producing self-catering unit. Additional marketing should result in extra income from the existing self-catering unit.
There are other self-catering and/or B & B establishments in the area.
What is the reason for the sale?
The current owners have decided to relocate to another Province to be closer to their family.
Why is this a good business?
This will suit somebody who prefers to live on the coast whilst taking advantage of a good income-producing self-catering unit with the potential of increasing income by converting a further room into another self-catering unit. There is almost zero maintenance to be done for the new owner.
What is the price plus stock and the net profit?
The asking price for the property is R4 600 000 which is very reasonable for such a well maintained and superbly positioned property in one of KZN's most desirable coastal towns. The actual and potential income can cover around 65% of a monthly repayment based on a 100% bond.
Annual Turnover Amount between R 500 thousand and R 6 million