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Annual turnover

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  • Mandate: 34269
  • Added: 08 Oct 2020
  • AFS
  • 154

A well established and profitable 13 bed upmarket guest house in Pretoria East

Gauteng, Pretoria
154
Mandate 34269
Added 08 Oct 2020
R 10,600,000* ZAR
Stock: R 0
Assets: R 4,809,684
R 61,335 ZAR
Ian Tennant
(PRINCIPAL)
Aldes Egoli
Gauteng, Hartbeespoort
Gauteng, Hartbeespoort
Summary

This guest house has been operating successfully for 17 years in Pretoria East. Most of its clientele are embassy related travelers or businessmen

SELLING PRICE AFS
R 10,600,000* ZAR
Stock: R0
Assets: R4,809,684
R 61,335 ZAR
Summary

This guest house has been operating successfully for 17 years in Pretoria East. Most of its clientele are embassy related travelers or businessmen

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Fully describe the business's activities?
This guest house is a highly recommended 4 star B&B Guesthouse situated in an upmarket area in Pretoria East that is close to schools, embassies, shopping centres and the Gautrain station. We cater from one night stays to monthly long term self-catering accommodation. We also serve dinner on request. Conference facilities are available for up to 14-16 delegates

How long has the business been established?
For 17 years from 2003

How long has the owner had the business?
Since 2012 as managers and owners of the guest house from 2015.

How does the business operate on a daily basis?
From 6:30 in the morning. Reception closes at 20:00. Late check ins are accommodated on request.

How are the clients attracted to the business?
Booking platforms, such as Booking.com, Expedia, Lekkerslaap are used, to name a few. Direct advertising to all the foreign embassies in the area is done annually. The majority of the guests are return clients/ companies.

What Advertising/Marketing is carried out?
Online marketing on booking platforms Word of mouth

Does the business have any contract work?
No formal contracts are in place but the United Nations uses 314 on Clark on a regular basis. Other frequent corporate clients include the Embassy of Japan, the Institute of Security Studies, the Japan International Cooperative Agency and the Embassy of Ireland.

What competition exists?
There are a couple of guest houses in the area being close to embassies and key business areas. The guest houses have a good relationships between them and help each other with overflow business.

What are the seasonal trends?
Traditionally December, January and February have been quiet months but the end of 2019 and the start of 2020 saw a significant increase in occupancy.

How did the Covid-19 pandemic impact the business turnover / daily operations?
The business was impacted but the guest house was fortunate to be be granted the right to act as a quarantine centre for the Japanese Embassy

Is the business VAT Registered?
Yes

What VAT documentation is on file?
All documentation is maintained on-site i.e. VAT reports, VAT 201 returns, and tax Invoices

Are there up-to-date Management Accounts available?
No, as a result of minimal trading during Covid 19 lockdown. Latest occupancy statistics are available.

What Balance Sheet and Income Statements are available?
Annual financial statements as at 29 February 2020

What percentage of the business is cash/credit?
Mainly EFT/ Card machine

How could the profitability of the business be improved?
Increasing the occupancy rates would be the most effective

Is Seller finance available and for what amount?
No

What is the total staff complement?
1 x housekeeping / cook lady (breakfast) 1 x morning receptionist from 6:30 until 13:00 (the owner) 1 x afternoon receptionist from 13:00 – 20:00 (she also cooks dinner)

Give a breakdown of staff/ functions/ length of service?
Housekeeping Lady – started in 2011 Receptionist – started in 2015

Do any receive special perks or incentives?
Housekeeping / cook lady receives transport money over weekends Afternoon receptionist receives transport money for the month and commission on all the dinner sales.

Are they on contract?
They do have employment contracts

Do any have management potential?
The afternoon receptionist does have potential

How involved is the Owner in running the business?
On a daily basis

What is the square meters of the business?
The guest house comprises 2082 sqm and the accommodation is configured as follows: - 5 x Executive Rooms - 2 x 1 Bedroom Self-catering Units - 1 x Garden Room – Self Catering Unit - 1 x 2 Bedroom - Self Catering Unit - 4 x Standard Rooms

Do you require a licence?
The property is zoned for a guest house

What are the main assets of the business?
Fully functional & furnished 13 room guest house with reception, inside and outside living areas, kitchen , fibre optic based WIFI, generator, cold room and sauna.

Are any items not included in the sale?
No

What is their overall condition?
Excellent

Are they presently insured?
Yes

Strengths?
- Rated as a 4-star guest house - Surrounded by embassies and company head offices - Award-winning and well- established guest house with 17 years of trading history

Weaknesses?
None to speak of

Opportunities?
- Conversion to long term/ self-catering accommodation - Conversion to embassy staff residence or office - Conversion into Spa with accommodation with treatment rooms

Threats?
Travel industry has shown itself to be very vulnerable to a pandemics (Covid19) but this will hopefully be brought under control in the short to medium term and the industry will return to its normal

What is the reason for the sale?
The owners are immigrating

Why is this a good business?
This guesthouse is well known and established, ideally located in the heart of the Pretoria embassy area and is very close to the key business and corporate zones in East Pretoria. Despite a healthy occupancy level, there is scope to increase this further.

What is the price plus stock and the profit?
The property, its contents and the guest house business is being sold for R10.6m

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FRANCHISE DETAILS

Aldes Egoli

1 members
10 active mandates
Gauteng , Hartbeespoort
51 Woodlands Avenue Peacanwood Estate Hartbeespoort 0216
Hartbeespoort

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