Fully describe the business's activities?
Lodge offers comfortable Bed and Breakfast Accommodation in Kwazulu Natal North. The Guest House is situated approx. 1.5km from the CBD and 7km from the beach and waterfront.Â The B&B is ideal for both the businessman visiting local industrial giants as well as the holidaymaker and enjoys a warm summer climate most of the year round. Â Swimming and surfing can be enjoyed Newark beaches, while the Waterfront & Beaches are a delight for anglers, jet skiers, power-boaters, canoeists and sailing enthusiasts.
How long has the business been established?
Since November 2000
How long has the owner had the business?
How does the business operate on a daily basis?
Business is run by owner and 6 staff, take booking via telephone and web enquiries, Housekeeping and general upkeep of the property get done daily. A fully equipped kitchen for a full English breakfast together with a fully stock bar and lounge area. General maintenance at the pool and patio area.
How are the clients attracted to the business?
Lodge is very well marketed and has been established for the last 16 years. Well known and supported in the area
What Advertising/Marketing is carried out?
Lodge is a member of the following: KZN tourism Ass, KWABABA, National Accommodation Ass, Affiliated to FEDHASA. Lodge is very well known and supported in the area, has a professional web site in place for bookings. Lodge also advertised by social media, word of mouth.
Does the business have any contract work?
The lodge is very well supported by business delegates and corporate companies that visit in the area. The area attracts allot of business due to industrial development in the area. Repeat clients visit the lodge especially holiday makers and keen fishing enthusiasts.
What competition exists?
There are other guest houses and lodges in the area, this is a coastal area North KZN.
What are the seasonal trends?
Lodge is contact throughout the year, peaks during festive and holiday seasons.
Are there up-to-date Management Accounts available?
Yes, up to date as well as financial, available to buyers during a due diligence on the Lodge
What Balance Sheet and Income Statements are available?
Up to Date February 2016
What percentage of the business is cash/credit?
Most of the payment are done via EFT
What is the age analysis of the debtors book?
There are some key major client like Delloits that have a 30 day account.
How could the profitability of the business be improved?
The current owner has implemented solid marketing tools for the lodge, 50 % plus occupancy has been steady. Taking advantage of events in the area and development projects can increase the yield up to 80% occupancy.
Is Seller finance available and for what amount?
Seller is willing to look at possible structures to accommodate sellers finance.
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
1 Owner, 5 Staff, 1 Domestic
Are they on contract?
Yes in place
How involved is the Owner in running the business?
When does the current lease end?
The property is bonded to the owner, property will be included in this sale.
What are the trading hours?
Monday - Sunday 24 hours
Do you require a licence?
What are the main assets of the business?
Property, Building structures, Furniture, Equipment, Office and Web site
Are any items not included in the sale?
All to be included as per assets list
What is their overall condition?
Excellent and well maintained.
Do any require repairing?
All is well kept and maintained.
How have they been valued ?
Conservative - Owners valuation
Are they presently insured?
Yes, fully comprehensive insurance in place.
Lodge is well established, well maintained & neat. The esthetics of the lodge is of a rustic and open feel. Comfortable air conditioned rooms offering a full English Breakfast. Professional web site in place putting this lodge a cut above the rest.
Taking advantage of this established and well kept lodge with all systems in place, the area attracts allot of business people due to major development and projects. The new owner can take advantage of all these areas to increase occupancy.
What is the reason for the sale?
Owner is tied up full time in this business and has other business interest to explore.
Why is this a good business?
Business covers all living expenses of the current owner, value in equity increases over the years. High property asset value, investment secure.
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