Fully describe the business's activities?
Guesthouse and self catering accommodation with in-house restaurant.
How long has the business been established?
How long has the owner had the business?
5 years. It must be pointed out that a lot of development has taken place over the past 5 years under the current Ownership. They are now the only graded guesthouse in the town, and registered with the hospitality sites and have upgraded the premises as well as the marketing initiatives. They have also hosted many various groups such as Off Road Adventure Bikers, MTB Vintage Bike and Car Groups, Sports groups etc.
How does the business operate on a daily basis?
The Owner handles the General Management functions.
How are the clients attracted to the business?
Marketing in the form of social media, website, national ind International listing sites. There has been a marked increase in international guest attendance in the last few years due to focused marketing initiatives.
What Advertising/Marketing is carried out?
Internet, social media, and other sundry initiatives. The maintenance of the website has been handed out to a professional business and has shown significant increased interest.
What competition exists?
There are two other guesthouses in town but each has their own following.
What are the seasonal trends?
The holiday periods are significant as are special events in the area such as the annual mountain marathon and cycle races. The region is a very popular training ground for outdoor sports due to the quality of the air and the location. The business is also impacted by the higher than normal traffic volumes over the holiday periods.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
Yes, as and when required.
What percentage of the business is cash/credit?
Cash 30% / Credit Card 70% and deposits paid up front by EFT.
How could the profitability of the business be improved?
By more focused on hand management and guest involvement which the Seller is not able to offer.
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
Recently appointed manager. Gardener of 3 years + 4 Cleaning ladies of between 5 and 22 years service.
Are they on contract?
How involved is the Owner in running the business?
The Owner is based in Gauteng which is not an ideal situation.
What are the trading hours?
Guest house hours.
What is the square meters of the business?
Approximately 2,784 Square meters. Erf number and rates account available when required
Who is the Owner/Landlord?
The property and the business Owner are the same person.
What are the main assets of the business?
The premises and the fixtures and fittings.
Are any items not included in the sale?
Yes, these will be made known to the buyer at the time of discussion.
What is their overall condition?
Predominately in very good condition since much of the assets are new.
Do any require repairing?
Are copies of agreements available?
The only agreement in place is that of the property currently.
Are they presently insured?
Well established Guest House in prime position as first one as enter town from the North...ideal location. Current Owner has revamped the whole place and much more appealing with restaurant facilities now in-house. Will offer the Owner an excellent quality of life in a very popular Garden Route Karoo town close to Oudtshoorn.
A major weakness over the past year are all the road works that have taken place which has impacted negatively on the businesses in the town. This is however a thing of the past. This type of business requires a hands on approach by the Owner or standards often drop...the current Owner unable to be hands on.
An on-site Owner would add a lot of benefit to the health of the business and would increase the profitability significantly. The business lends itself to small cozy group bookings by nature of the venue....this could be an opportunity to exploit.
Now that the road works are almost a thing of the past there are no obvious threats known of.
What is the reason for the sale?
The Owner is leaving South Africa to relocate and therefore wishes to sell this guest house and the land.
Why is this a good business?
As with all guest houses the monthly income stream is offset by the property costs, but long term growth and quality of life make this guest house an attractive offer to the correct Buyer/Operator. This is an ideal location for serenity, health and security and offers a quality of life that will not be easy to replicate elsewhere in South Africa. The Small Karoo is known for its quality of life and healthy climate, and coupled with the satisfaction of running a popular guesthouse adds to the quality. An ideal business for a couple who wish to enjoy a more serene quality of life but still keep active business wise.
What is the price plus stock and the net profit?
The stock will be calculated at time of sale. The monthly profit is shown as R27,000 but this is substantially affected by events and seasonality to a lesser degree. The asking price inclusive of the land, building and all the fixtures and fittings is R4.9 Million
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