Fully describe the business's activities?
Guesthouse and residential home.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
The Guesthouse has two dedicated staff who manage the suites and are responsible for the guests well-being. There are more staff on the premises, but two are dedicated to the running of the guesthouse.
How are the clients attracted to the business?
16 web sites with booking facilities managed by third party agents.
What Advertising/Marketing is carried out?
Only the 16 website listings.
What competition exists?
There are numerous other guesthouses in the area and across the whole region, each with its own character, but none very close to this home.
What are the seasonal trends?
Strong summer highs with a significant winter period drop off.
Is the business VAT Registered?
What percentage of the business is cash/credit?
Speedpoint 50%, EFT's 50%. Deposit upon reservation, balance upon arrival.
How could the profitability of the business be improved?
There is an opportunity to review the accommodation tariffs.
Is Seller finance available and for what amount?
The Seller is prepared to come to an arrangement with the Buyer, but only if the correct terms and conditions are in place and if a substantial deposit is paid up front. Subject to negotiation.
What is the total staff complement?
There are two staff dedicated to the guesthouse and guests well-being. Extra staff are brought in as required to cover the needs in the summer season. There are other staff on the premises who tend the garden, the horses and outdoor maintenance etc.
How involved is the Owner in running the business?
On a daily basis, managing the Guesthouse and other duties. The Owner is supported by a small staff who each has their own area of responsibility.
What is the square meters of the business?
The Guesthouse and private residence are kept separate but under the same roof, and the size is 2,500 square meters in total. The total stand size is 5.2 hectares.
What are the main assets of the business?
The property itself comprising 15 very large guest suites each fully equipped with TV and music facilities, fridge and refreshment facilities. The furniture and fixtures such as the large lounges, kitchen with the equipment, gym equipment, theater, heated pool, outdoor pool,stables etc.
Are any items not included in the sale?
Yes, there are numerous pieces of collector art as well as a number of other personal effects which will be pointed out to the Buyer.
What is their overall condition?
Very good condition generally.
Do any require repairing?
No, all assets are kept maintained in good working condition.
Will Seller settle or Buyer to take over?
The Seller is prepared to retain the stud farm part of the home and pay rental as required, and will also consider assisting with the responsibility of the guest house if the Buyer would like them to do so.
Are they presently insured?
Yes, comprehensive home owners, household, personal liability etc.
The location is easily accessible but very secluded with privacy of the guests being maintained. The marketing of the Guesthouse and the rates are very good, and this business is very presentable. Guests comforts are paramount and they have all the facilities that they may require to escape from the city but still be pampered, from TV and video in the rooms, and all rooms have fridges, refreshment facilities and their own private outdoor areas.
There are no obvious weaknesses. As with most guest houses, the profitability of the business is not sufficient to furnish a large bond. (But being the home of the Owner together with the profits generated, ensure an excellent quality of life for the Buyer)
There are many opportunities within this large home to introduce further pampering facilities such as masseurs and sauna's etc, as well as increasing the catering aspect to include meals. There is an opportunity to rent out the stabling facilities to the current Owner who would like to carry on with the Percheron Stud.
There are no obvious threats known of.
What is the reason for the sale?
The Owner is looking to be more involved in business as he already has strong interests. He also wishes to pursue the stud farm operations as they breed with Percheron horses currently. He is prepared to retain and manage the stables and possible assist with the guest house for an agreed period but long term wishes to move out of the guest house business.
Why is this a good business?
As with most guest house the income and expenses to not offer a high enough profitability to furnish a bod. However, the home with its size and large fully equipped suites, indoor and outdoor pools, gym and theater as well as comfortable lounges, lends itself to being a guesthouse. On average the profitability is in the region of R30K per month, which is not a very demanding responsibility and not imposing to the home Owners due to the layout of the residence.
What is the price plus stock and the net profit?
The Selling Price is R7,4 Million, and the stock varies around R6,000. Average net profit is in the region of R30,000 per month.
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