Established Guest House with potential to grow
Listing # GBB122 Location Mpumalanga Selling Price R 3,950,000 Annual Sales R 775,000 SDE R 924,000 ROI 23.40% Industry Accommodation & Tourism
This listing offers a well-established Guest House situated in a major Mpumalanga town.
The Guest House is in a quite suburb but within close proximity of major shopping centres and the provincial hospital. Other nearby features is a casino and dam.
The Guest House is ideal for large group bookings for long-term accommodation, such as contract workers or other companies with a total of 13 bedrooms of which six is self-contained with a full kitchenette each.
The Bedrooms can accommodate for up to 26 guests:
· * Guest House & Self Catering offers Tea / coffee facilities in all bedrooms
· *TV and DSTV in all bedrooms (13 Channels)
· * Bar fridge in all of the rooms
· * Outside Braai area
· * Laundry facilities
· * Safe parking on-site
· * Electric fence
· * Remote Gate
* Offer meals on arrangement
The premises have a relaxing and home atmosphere and outside braai area.
The reason for selling is that the owners relocated to Pretoria.
The business has done well over the years but revenues have either remained constant or dropped as the owners are no longer able to secure big contracts anymore from surrounding corporate and SOE’s due to BBBEE. However the business still offers great potential for an owner with the right criteria and connections to restore it to the previous profitability with sufficient occupancy levels, etc.
Historical average EBPITD profits (Earnings before Proprietor compensation, interest and tax) is R77,000 per month and there is also the added benefit of capital growth on the unique property. The real potential is there to restore the previously attained profit levels in this large and growing town.
The price of R3,950m include the property (land and buildings), fencing, furnishings for 13 bed rooms with en-suites, dining room, fully fitted kitchen, braai area, safe paved parking. Established website domain also included.
The property can also merely be used for ordinary Residential Property and stay.
Full financials and detailed asset list is available for serious buyers.