Fully describe the business's activities?
Exquisite Victorian guest house nestled in the leafy green suburbs boasts beautiful accommodation facilities surrounded by majestic gardens. Close to all amenities, the main house has 4 bedrooms and the guesthouse consists of 8 fully equipped rooms all with en-suite bathrooms.
How long has the business been established?
The guesthouse was established in 1998.
How long has the owner had the business?
The owner started the guesthouse 20 years ago and has been operating it successfully ever since.
How does the business operate on a daily basis?
The business functions as a guesthouse providing accommodation and meal packages tailor made to suit clients' requirements. Clients range from contractors working on the mines and power stations close by to corporate teambuilding activities.
How are the clients attracted to the business?
The business generates reservations via various online booking platforms as well as its own website.
What Advertising/Marketing is carried out?
Various online marketing platforms.
Does the business have any contract work?
What competition exists?
There are various hotels, lodges and guesthouses in the area.
What are the seasonal trends?
The guesthouse is quieter from mid December to mid January.
Is the business VAT Registered?
No. Not applicable.
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Up to date financial statements are available on request.
What percentage of the business is cash/credit?
No more than 10% to 15% of sales are generated in cash. Clients settle accounts via credit card or EFT.
How could the profitability of the business be improved?
Current occupancy rate of about 60% could easily be improved.
Is Seller finance available and for what amount?
What is the total staff complement?
The business employs 3 full time staff members
Give a breakdown of staff/ functions/ length of service?
1 manager 2 cleaning staff
Do any receive special perks or incentives?
The manager is provided with on site accommodation and meals.
Are they on contract?
How involved is the Owner in running the business?
The owner lives on the premises and is very involved in the day to day operations of the business.
Who is the Owner/Landlord?
The property is owned by the seller and will be included in the sale.
Do you require a licence?
The property has been re-zoned for guesthouse purposes.
What are the main assets of the business?
The property as well as guest lodge furniture and fittings (apart from personal items) are included in the sale. A full inventory is available on request.
Are any items not included in the sale?
Personal items of sentimental value and furniture in the owners living area.
What is their overall condition?
Do any require repairing?
No. Normal maintenance.
How have they been valued ?
This guesthouse is in a excellent location and has an established client base with repeat business. Beautifully decorated and furnished.
Lacking in aggressive marketing.
There are various opportunities to increase the occupancy by advertising and marketing. Focus could be given to functions and events.
There is constant competition in this industry, however, this business has been operating successfully for 20 years.
What is the reason for the sale?
Owner is planning to relocate to a different province to further other existing business interests and to be closer to family.
Why is this a good business?
The guesthouse is well established and has an excellent reputation. There is good income potential from diversified income streams.
What is the price plus stock and the net profit?
R4 000 000 all inclusive.
Annual Turnover Amount between R 500 thousand and R 6 million