Fully describe the business's activities?
The guesthouse embodies an ideal blend of quaint charm, attentive service and modern comforts. This Guesthouse offers affordable accommodation in a relaxed environment. Management has been receiving guests for over 50 years. Situated in the central of Pretoria, with many attractions in the near vicinity, it is the perfect place to call home! Boasting 18 double rooms with private bathrooms & 22 double rooms with public bathrooms - suiting guests budget.
How long has the business been established?
This Guesthouse was established in 1971.
How long has the owner had the business?
The current owner bought the guest house in 2000.
How does the business operate on a daily basis?
Management lives in & manage all daily operations of the business.
How are the clients attracted to the business?
Well established over 50 Years. Customer base consists of businesses, government and diplomats from foreign countries. One day accommodation is well used by the local community. Hospitals, in the vicinity, have frequent stay-in visitors.
What Advertising/Marketing is carried out?
There is an established website.
Does the business have any contract work?
What competition exists?
Some, but guesthouse is well supported.
What are the seasonal trends?
Quite stable occupancy throughout the year.
How did the Covid-19 pandemic impact the business turnover / daily operations?
Covid-19 did have a effect on the business - normal growth is shown again.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Annual financials ending Feb 2020 is available.
What is the total staff complement?
Staff compliment: 4.
Are they on contract?
All staff are contracted.
Do any have management potential?
How involved is the Owner in running the business?
Owner is involved on a daily basis.
When does the current lease end?
Rented with 20 year lease contract.
Is there an option of renewal & what period?
What is the annual escalation %?
Escalation percentage: 10%.
Is a copy of the lease available?
What are the main assets of the business?
A asset list is available.
What is their overall condition?
Which assets are on lease/HP and with whom?
Are they presently insured?
Well established guesthouse. Well known by surrounding hospitals, clinics, embassy and businesses.
Economical climate has an influence on the business.
This is business requires a BEE owner. Will do very well with government bodies that reserve venue for training.
Mostly economical climate.
What is the reason for the sale?
The owner has other businesses he wants to focus on.
Why is this a good business?
This business shows good profits.
Annual Turnover Amount between R 500 thousand and R 6 million