Coastal based premium guesthouse, lodge WITH PROPERTY for sale a short drive east of Cape Town

Asking Price

R15,000,000

Monthly Profit

R74,106

Asset Value

R 11,200,000

Stock Value

R 0

Yearly Net Profit

R 889,272

Summary

This coastal based guesthouse comprises unique, spacious en-suite rooms and apartments filled with individual character. Most rooms feature private verandas opening up to beautiful sea views. Private bathrooms equipped with deep baths or showers and complimentary premium body care products. There is secure private parking included for all guests. The bedrooms are bright and airy, some opening onto a private wooden deck with ocean views. Home-cooked meals are available by arrangement. An intimate pub offers refreshing drinks and premium local wines from the surrounding valley. A beautifully set dinner table alongside a glass of regional red wine in a cozy pub setting. Clients feedback: Rated 9.4/10 by couples looking for the perfect two-person getaway. \"All was splendid... Staff helpful and friendly. Owners made time to chat, gave information about local activities. Loved our stay.\"

Give me more information

Fully describe the business's activities?

4 Star graded guesthouse, coastal based and a short drive east of Cape Town.
Accommodation with breakfast as well as lunches and dinners by arrangement,
Catering for groups is also an option.
Cozy in-house pub offers a hospitable ambience to guests.
The business can accommodate up to 22 Guests in 9 rooms, all en-suite

How long has the business been established?

Since 2000

How long has the owner had the business?

Owned by current Owners since 2011.

How does the business operate on a daily basis?

The Owners are both active within the business on a daily basis, and assisted by a team of 4 staff members

What Advertising/Marketing is carried out?

On all major booking platforms that are used to search for accommodation particularly by business people.
They have weekly Facebook and Instagram marketing initiatives.

Does the business have any contract work?

They do have dedicated groups who return regularly and also business people who make regular use of this guesthouse.

What competition exists?

There are a number of local competitors.

What percentage of the business is cash/credit?

Predominately EFT or Credit Card payments

How could the profitability of the business be improved?

The area is showing growth in all aspects, and this will assure increased growth and increased profitability for this business.

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

Two Owners
Senior Housekeeper
2 x Housekeepers
Handyman/Gardener

Are they on contract?

All employees have approved contracts in place.

Do any have management potential?

The staff are capable of running the business without supervision.

How involved is the Owner in running the business?

Both Owners play an active operational role on a daily basis.

When does the current lease end?

The property is owned by the business and available to be purchased.

What are the trading hours?

Generally the business trades with flexible hours as is the nature of the hospitality sector.
Reception hours are from 07-00 to 19-00 daily.

Do you require a licence?

Premises are zoned as commercial.
A liquor license is in place for the property and the bar.
4 Star TGSA grading.

Does the premises get impacted by load shedding?

The business has recently installed a 30KW solar system with 58 x 620W solar panels,16 batteries, and a 3 phase inverter with three heat pumps for hot water on one side of the building, and also a large volume gas geyser on the other side of the building.

What are the main assets of the business?

The main assets are the land and buildings, and all the required assets for a guesthouse.
There are 3 sets of linen per room for 9 rooms and the required equipment to maintain the home and garden as well as stock required for the kitchen, pub etc
Furniture and fittings as currently comprise the facility.

Are any items not included in the sale?

There are a number of personal items that will be pointed out to an interested Buyer such as a personal art collection and Persian carpets of the Seller.

What is their overall condition?

Since this is a large property and it is situated in a very variant weather environment, the premises require ongoing maintenance and attention.
Hence there is a full time handyman/gardener on the payroll.

Do any require repairing?

No, just ongoing maintenance is required to keep the guesthouse in good condition.

Strengths?

This business has an excellent track record and very good guest reviews.
The range of rooms and related tariffs is wide so as to cater for extended stays by high-end tourists or holiday makers, as well as short stays for corporate or government clients.
The business also enjoys a number of repeat groups annually and a high mid-week occupancy.
etc.
The major platforms are Booking.com, Agoda, Safari Now, LekkaSlaap, Travel IT, as well as multiple travel agents, most of whom have been making reservations with the property for many years. The platforms all integrate to Nightsbridge and they use Paybridge for processing payments.

Weaknesses?

The business would benefit from a stronger social media presence.

Opportunities?

The Owners have appointed a person to focus on improving their social media marketing.
There is significant general development in the area, and a new hospital due to be completed later this year which will have spin off for this guesthouse.
Being at the start of the Garden Route, this coastal town will enjoy increased tourism over the near future, which is also impacted by the new and upgraded road system and marketing of the town itself

Threats?

Apart from the general political standing of the country and unavoidable economic and social, security issues etc, there is no known threat to this business.

What is the reason for the sale?

The Owners are now within reach of retirement age and wish to travel in the not too distant future
They have successfully owned and managed the business for over 15 years and with the staff all being very well trained and capable, they feel that it is time to contemplate selling.

Why is this a good business?

A popular tourist location as well as being a strong and developing town in proximity of Cape Town and the start of the Garden Route, this is an ideal location for a guesthouse and an excellent opportunity for a Buyer who would like to enjoy a coastal quality of life but still own a vibrant and viable business.