Ref. No - BFS938391

LocationSouth Africa, Gauteng

Ref. No - BFS938391

Sector - Accommodation

Asking Price
R5,500,000
Monthly Profit
R21,038
Asset Value
R 4,610,000
Stock Value
R 0
Yearly Net Profit
R 252,460

Summary

The property includes a spacious private residence plus three fully furnished guest suites operating as an established guesthouse. The business has demonstrated consistent demand, with actual occupancy of approximately 63%, strong historical turnover and exceptional guest feedback, including a 9.6/10 Booking.com rating and 5.0/5 on LekkeSlaap.

Give me more information

Fully describe the business's activities?

A substantial home that happens to have an established income-producing guesthouse attached to it.
The business operates as an established, owner-managed guesthouse in Lynnwood Manor, Pretoria, offering short-term accommodation through three fully furnished guest suites situated on the same property as a substantial private residence. Guests are sourced through established online booking platforms and direct enquiries, with the operation benefiting from strong historical occupancy, repeat business and excellent guest ratings, including 9.6/10 on Booking.com and 5.0/5 on LekkeSlaap.

The guesthouse activities include accommodation management, reservations and guest communications, housekeeping and cleaning, linen and room preparation, maintenance of guest facilities, management of utilities and security, online booking administration and general property upkeep. The property is specially zoned for guesthouse use and is sold as a going concern together with the relevant furniture, fittings, equipment and operating infrastructure.

The business is particularly suited to a resident owner-operator, as the purchaser can occupy the main residence while continuing to operate the three income-producing guest suites.

How does the business operate on a daily basis?

Owner-operated, perfect for a couple that wants to be earning a solid income, yet have a quality lifestyle

What Advertising/Marketing is carried out?

Very strong on Lekkeslaap, Bookings.com with high rankings
Very high rankings on Facebook, Tripadvisor and Google as well

What competition exists?

Niormal Gues House Competition

How could the profitability of the business be improved?

As on approved plans, add the additional room, increase the rooms froom 3 to 5 and that also have a laundry on the plans that can be added.

Give a breakdown of staff/ functions/ length of service?

Will be dicussed with approved buyers

Do any have management potential?

No

How involved is the Owner in running the business?

Hands-on in-house owner-operator

When does the current lease end?

No lease, property is included in the sale

What are the trading hours?

Normal guesthouse hours

What are the main assets of the business?

The bespoke property

Strengths?

Established trading history with proven guesthouse revenue and actual occupancy performance.
Excellent online reputation, including 9.6/10 on Booking.com and 5.0/5 on LekkeSlaap.
Special zoning for guesthouse use, reducing planning and operating risk for a purchaser.
Attractive owner-operator model, combining a substantial private residence with three income-producing guest suites.
Low business-entry risk, as the purchaser acquires an existing operation with furniture, equipment, booking platforms and established market presence.

Weaknesses?

Small scale, with only three income-generating guest suites limiting maximum turnover.
Earnings are relatively modest in relation to the total property value when viewed purely as an investment yield.
Some operating costs are shared between the residence and guesthouse, r

Opportunities?

Add on the extra room, approved on plans, and your income will increase by 25%
Increase direct bookings to reduce commission costs and improve margins.
Develop additional guest services or packages to increase revenue per guest without materially increasing fixed costs.
Leverage the strong review profile to position the guesthouse more aggressively in the premium accommodation market.

Threats?

Dependence on online booking platforms exposes the business to changes in commissions, algorithms and platform policies.
Unexpected property maintenance or refurbishment requirements could result in significant periodic capital expenditure.

What is the reason for the sale?

Owner will be relocating
Location

Contact | Enquire

Louis

Louis Bruwer

LocationSouth Africa

Preferred method of contact

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