Sectors / Category

Annual turnover

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  • Mandate: 33327
  • Added: 08 Nov 2019
  • AFS
  • 486

Well Established Midlands Hotel

KwaZulu-Natal,
486
Mandate 33327
Added 08 Nov 2019
R 29,670,000* ZAR
Stock: R 170,000
Assets: R 19,174,442
R 346,736 ZAR
Nic Nortje
(PRINCIPAL)
Aldes Prestige
KwaZulu-Natal, Hillcrest
KwaZulu-Natal, Hillcrest
Summary

Well established hotel, conference centre and wedding venue in the KZN Midlands. Ideal for those wanting to explore the Midlands Meander or just wanting to take a break from city life.

Well Established Midlands Hotel
SELLING PRICE AFS
R 29,670,000* ZAR
Stock: R170,000
Assets: R19,174,442
R 346,736 ZAR
Summary

Well established hotel, conference centre and wedding venue in the KZN Midlands. Ideal for those wanting to explore the Midlands Meander or just wanting to take a break from city life.

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Fully describe the business's activities?
A leading, well known and well established Hotel, Conference venue and Training College on a large property which includes a chapel and wedding venue. Close to all amenities yet sufficiently tucked away to escape the 'rat race', this is a destination you visit once but never forget. The business has scope for substantial development into additional services like spa treatments, as well as self-catering units, whilst boasting year round occupancy and event bookings. The hotel school is fully accredited and there is a popular restaurant open to the public.

How long has the business been established?
30 years

How long has the owner had the business?
30 years

How does the business operate on a daily basis?
The hotel attracts ad hoc visitors and holiday makers, the conference facility caters to groups in the private and public sector, and the hotel school has an annual intake of students.

How are the clients attracted to the business?
Online marketing, social media, targeted marketing campaigns, word of mouth and many returning customers.

What Advertising/Marketing is carried out?
Digital marketing

Does the business have any contract work?
No

What competition exists?
Local hotels in the area, although none have the rare combination of accommodation, conferencing, weddings and college.

What are the seasonal trends?
No discernible trends; busy all year, with January being the only 'quiet' month.

Is the business VAT Registered?
Yes

What VAT documentation is on file?
Tax clearance certificate & past submissions

Are there up-to-date Management Accounts available?
Yes

What Balance Sheet and Income Statements are available?
Audited AFS for FY2019

What percentage of the business is cash/credit?
50:50

What is the age analysis of the debtors book?
60 days

How could the profitability of the business be improved?
Reduction in number of Senior Executives, which the sale will bring about. Also, taking the hotel off the grid. Step one has already been implemented - in late 2019 R 750 000 was invested in solar power to reduce electricity costs.

Is Seller finance available and for what amount?
No

What is the total staff complement?
30

Give a breakdown of staff/ functions/ length of service?
General Manager (GM) Sous Chefs Head of Training Facilitator and Assessor Head of Functions Head of Maintenance Hospitality staff in various roles reporting to the above

Do any receive special perks or incentives?
A few managers receive fuel for travel

Are they on contract?
Yes

Do any have management potential?
Yes, the GM in particular is fully capable of running the business as all systems are in place, all departments have excellent managers in place and the team overall is very efficient, effective and dedicated.

How involved is the Owner in running the business?
Currently there is daily involvement but as mentioned, the business is systems based and GM run. A financial manager would be the only additional resource that would be recommended.

When does the current lease end?
The seller owns the property, which forms part and parcel of this sale. It is a beautiful 22 hectare farm , with an abundance of space for growth and development.

What are the trading hours?
24/7

What is the square meters of the business?
4200

Do you require a licence?
Yes, a liquor license.

What are the main assets of the business?
Buildings, furniture, fixtures, motor vehicles, carpets, curtains, IT equipment, cutlery, crockery.

Are any items not included in the sale?
Directors' vehicles and a few listed items

What is their overall condition?
Good

Do any require repairing?
No

How have they been valued ?
Cost less accumulated depreciation

Which assets are on lease/HP and with whom?
Telephones with Centrafin and PoS machines with Custom Capital

What are their settlement amounts?
TBC

Will Seller settle or Buyer to take over?
Buyer would probably want to take it over

Are copies of agreements available?
Yes

Are they presently insured?
Yes

Strengths?
Long standing and excellent reputation, popular restaurant, beautiful location, but above all the rare combination of accommodation, conferencing, weddings and accredited college.

Weaknesses?
No spa facilities

Opportunities?
Ample land for development - spa & treatment centre, self-catering units, general expansion. The college can be expanded. Government, SoE and large corporate conferencing contracts.

Threats?
Political climate

What is the reason for the sale?
Retirement - owner is 73 years old.

Why is this a good business?
It is very profitable, it is systems and Management run, and the college acts as a natural feeder for the staffing requirements of the business. There is huge scope for growth and development.

What is the price plus stock and the profit?
R29 500 000 for the business plus stock. The hotel is situated on 22 hectares of prime real estate, which makes up R20m of the purchase price.

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FRANCHISE DETAILS

Aldes Prestige

2 members
7 active mandates
KwaZulu-Natal , Hillcrest
4 Plantations 47 Shongweni Road
Hillcrest
4016

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