Fully describe the business's activities?
This Guest House caters for business travelers and enjoys the benefit of an established customer base built up over 14 years. It has a 4 star grading and guests stay over mostly during the week. No liquor licence.
How long has the business been established?
The owner started the business in 2006.
How does the business operate on a daily basis?
A hands on manager that also resides on the property takes care of all the daily operations of the business. Their manager attends to inquiries and reservations, liaises with clients and also organizes their staff with regards to the cleaning and preparation of rooms.
How are the clients attracted to the business?
Many repeat customers. Business also markets it's accommodation on bookings.com, safarinow.co.za and lekkerslaap.co.za
What Advertising/Marketing is carried out?
The business advertises on various accommodation websites and it also has a neat website. Important: The business has two unique and sort after web addresses that it uses to promote itself. Both these URL's are included in the transaction.
Does the business have any contract work?
No. Canvassing businesses the local area should result in additional revenue.
What competition exists?
There are numerous guest houses. This is an extremely competitive market.
What are the seasonal trends?
During the April holidays as well as the last two weeks in December and first week in January, the occupancy is very low. Weekends have spare capacity.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The business went into lock down as of 26th March 2020 and only resumed operations on the stage 3 disaster management announcement. During June 2020 there has been an increase in turnover.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
The entire premises has been sanitized / prepared. Training for the 3 staff members has been completed.
Is the business VAT Registered?
The business is a VAT vendor.
What VAT documentation is on file?
VAT 201 returns completed by an accountant and are readily available.
Are there up-to-date Management Accounts available?
The business uses Sage Pastel and month by month management accounts are readily available.
What Balance Sheet and Income Statements are available?
On file we have a draft of Financials for period ending February 2020.
What percentage of the business is cash/credit?
Most payments are completed via EFT, debit and credit card.
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Some cost cutting can be undertaken. Canvassing the surrounding area and targeting local businesses should see an increase of guests.
What is the total staff complement?
Three permanent staff members and one casual labourer.
Give a breakdown of staff/ functions/ length of service?
Manageress (widow) has been with the business for 8 years and oversees all daily activities of the guest house with a hands on approach. Two staff members on a permanent basis for cleaning, cooking and general work. One casual labourer taking care of the garden.
Do any receive special perks or incentives?
The Manageress resides on the property on a permanent basis.
Are they on contract?
All contracts are up to date and available.
How involved is the Owner in running the business?
The Owner is not involved in the daily operations of the business. He attends to the digital marketing of the Guest House.
Give a breakdown of the property.
Two adjacent properties with separate title deeds and registered in the name of separate entities. The main guesthouse is a two story building with 8 exceptional rooms, all on suite, 8 secure onsite parking bays, kitchen and dining room. Also the Manageress' room, maids room and two store rooms. Most of the rooms have balcony's with a beautiful patio. Erf size: 984 m2 The adjacent property measures 826 m2 and consists of a 3 bedroom house with a swimming pool as well as two extra guest rooms.
What are the main assets of the business?
Core assets include furniture and fixtures such as beds, curtains, fridges, televisions, linen, kitchen appliances, patio furniture, washers and dryers. Full Asset Register available.
Are any items not included in the sale?
In the dining room there is vintage family furniture which the seller will replace.
What is their overall condition?
I was most impressed with the condition of the assets. Well maintained - no repairs required.
Which assets are on lease/HP and with whom?
All assets are paid for and included in the asking price.
Manager-run. Location. Website. Established customer base. Repeat guests. Stylishly furnished.
Not enough canvassing in the surrounding area.
Current occupancy rate of 45%.
Current pandemic and general economic conditions.
What is the reason for the sale?
The Owner has been in the industry for 14 years and wishes to exit.
Why is this a good business?
Value in the underlying properties and priced to sell.
What is the price plus stock and the profit?
R5 450 000.00 (Two properties)
Discover similar, inspiring businesses for sale
Annual Turnover Amount between R 500 thousand and R 6 million