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Annual turnover

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  • Mandate: 31787
  • Added: 21 May 2018
  • AFS
  • 608

Guest lodge with luxurious rooms close to Airport

Gauteng, Midrand Area
608
Mandate 31787
Added 21 May 2018
R 8,600,000* ZAR
Stock: R 0
Assets: R 6,183,983
R 168,014 ZAR
Arie Roos
(PRINCIPAL)
Aldes Longtom
Mpumalanga
Mpumalanga
Summary

This guest lodge is ideally located for business and leisure travelers It offers a ideal venue for small conferences or weddings and have luxury en-suite rooms , bar and restaurant

SELLING PRICE AFS
R 8,600,000* ZAR
Stock: R0
Assets: R6,183,983
R 168,014 ZAR
Summary

This guest lodge is ideally located for business and leisure travelers It offers a ideal venue for small conferences or weddings and have luxury en-suite rooms , bar and restaurant

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Fully describe the business's activities?
The business's activities include the following : Accommodation ( 76 beds )( 26 rooms ) Functions Weddings Conferences fasility Shuttle service to and from the airport and conferences in Sandton offered

How long has the business been established?
10 Years

How long has the owner had the business?
10 Years

How does the business operate on a daily basis?
Guests are booked in and out Breakfast is served Admin is done and rooms are serviced Shuttle service is scheduled to airport and conferences Lunch and dinner is served Functions are planned

How are the clients attracted to the business?
Word of mouth and websites

What Advertising/Marketing is carried out?
Via hospitality booking websites like : SafariNow , SAVenues , Bookings.Com Information booklets and flyers at : Conference venues , wedding venues and a local business booklet

Does the business have any contract work?
Only via verbal agreements with regular guests

What competition exists?
Hotels , Lodges and guesthouses in the area

What are the seasonal trends?
Lower turnover during holiday seasons because most guests are business people

Is the business VAT Registered?
Yes

What VAT documentation is on file?
VAT is paid of to date

Are there up-to-date Management Accounts available?
Yes , available on request

What Balance Sheet and Income Statements are available?
Yes , available on request

What percentage of the business is cash/credit?
60% cash 20% foreign currencies 20% payments via EFT and credit cards

What is the age analysis of the debtors book?
Mostly cash

How could the profitability of the business be improved?
The owners must be more involved Better advertising must be done Less rooms must be booked out for ""Long term "" stays as it is less profitable - although this long term bookings is covering a lot of fixed expenses . Smaller weddings / anniversaries / parties can add to the profitability

Is Seller finance available and for what amount?
Yes , negotiable

What is the ROI?
18%

Who is the bookkeeper/Accountant?
Edgar de Kock is the accountant

Who will settle outstanding bonds and loans ?
The seller will settle all outstanding bonds on the property upon purchase

What is the total staff complement?
8

Give a breakdown of staff/ functions/ length of service?
1x Manager / Chef 3 x Cleaners 1 x Chef 1 x Garden worker 2 x Drivers and Maintenance helpers

Do any receive special perks or incentives?
Some stay on the premises as a benefit

Are they on contract?
All on standard contracts

Do any have management potential?
Yes , the manger / Chef

How involved is the Owner in running the business?
The owner is currently not very involved but is doing some of the admin and is helping with events like weddings The husband is responsible for the day to day running of the Guest Lodge

When does the current lease end?
Owns the property

What are the trading hours?
24 / 7

What is the square meters of the business?
Portion 1 1431 square meters ( 885 square under roof ) Portion 2/3 1718 square meters ( 600 squares under roof )

Who is the Owner/Landlord?
Owner

Do you require a licence?
The re-zoning of the properties is in process with the local counsel This also affect the application of the beverage license A confirmation letter can be obtained from the Town Planner The cost of the re-zoning will be about R 30 000

What are the main assets of the business?
The 2 properties and the guest lodge furniture and fittings are all included The properties and improvements were valuated in September 2017 at about R 5.2 million The furniture , fittings and interior stock in the rooms , office and kitchen is valued by the owner at about R 1 million

Are any items not included in the sale?
There will be some personal items for the owner that will not be included ( will be specified with the buyer ) Also note that the business does not have it's own Combi to shuttle guests a Small car is used and for bigger groups the service from a neighboring guesthouse is used

What is their overall condition?
Good

Do any require repairing?
No , normal maintenance

How have they been valued ?
The properties were valuated by a valuator in September 2017 The rest was valued as per inventory by the owner ( list available )

Strengths?
This is an established business with a diversified income stream This business is very close ( 5km ) to the OR Tambo International airport

Weaknesses?
The " hands-on " management is lacking Marketing is not aggressive enough

Opportunities?
Lodging of more tourists paying in foreign currencies Flexibility in shuttling guests to and from the airport and other conference venues in the Midrand area If a shuttle Combi of their own can be used - it will generate additional income instead as a expense The cash income can be boosted by hosting more weddings and functions at the Lodge

Threats?
There is constant competition in this industry The outstanding re-zoning process that is dragging on

What is the reason for the sale?
The owners are parting ways and want to sell the business

Why is this a good business?
This business has an good income potential for the owner with drive , initiative and contacts in the hospitality industry . The income stream is diversified in terms of accommodation , functions , weddings , tours , shuttle service , conference room and restaurant . There are a constant growth in the tourist industry - and this business is positioned to benefit from it

What is the price plus stock and the net profit?
8.6 Million all inclusive

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FRANCHISE DETAILS

Aldes Longtom

2 members
12 active mandates
Mpumalanga
31 Fourie Street
1120

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