How does the business operate on a daily basis?
Clients phone in or arrive at the hotel needing accommodation. Rooms are then allocated for the desired period which is either daily, weekly or monthly, each with their own rate.

Bar and restaurant open to the public daily and they have gaming machines and pool tables that can be used.

How are the clients attracted to the business?
This is safe, comfortable and affordable accommodation, centrally located, close to highways and bus routes. The restaurant offers good quality food, generous portions and at an affordable price. The business offers a convivial environment with friendly staff. The bar offers live music on Fridays and karaoke at times.

The place serves as a monthly meeting venue for various organisations and can handle promotions, potjiekos competitions, braai days, weddings, birthdays and bachelors parties as well as year-end functions

What Advertising/Marketing is carried out?
Facebook
Regulars
Word-of-mouth

Does the business have any contract work?
For the accommodation revenue, there is no contracts in the industry.

The business earns monthly revenue for the cellphone towers placed on the roof, and this is contractual income and makes up 26% of the revenue, increasing annually.

What competition exists?
There isn't any other hotel in the area that has been around as long as this hotel has been. Similarly, there is no other direct competition in the area.

What are the seasonal trends?
November and December times are busier than other months in any given year.

How did COVID-19 impact the business turnover?
Due to Government Regulations on Total Lockdown Level 5 for 7 months between 2020 - 2021, no revenue from the drinks, food and gambling was received. However, accommodation was in demand and the Cell tower rentals remained a steady source of income.

Is the business VAT Registered?
Yes

What VAT documentation is on file?
VAT certifiate
Regular VAT submissions

Are there up-to-date Management Accounts available?
Yes

What percentage of the business is cash/credit?
Credit is not offered!

Business has 5 different revenue streams:
1. Restaurant - 6% of the revenue
2. Bar - 34% of the revenue
3. Accommodation - 22% of the revenue
4. Cell phone tower rentals - 26% of the revenue
5. Gaming machine revenue - 12% of the revenue

What is the age analysis of the debtors book?
They do not have any debtors.

How could the profitability of the business be improved?
Assertive marketing for:
- Venue for a variety of functions
- Sunday Family Lunch Special in the Dining Room area
- Additional entertainment evenings, e.g. Bingo, Quiz nights, Poker Nights
- Additional gaming machines
- Outside catering for individual and group functions

Is Seller finance available and for what amount?
Seller finance is not an option.

What is the total staff complement?
Total 8 staff members of which 7 belong to the SAEWA union

1 Outsourced admin lady as and when needed.

Give a breakdown of staff/ functions/ length of service?
1 x Housekeeper - 23 years
5 x Kitchen and bar staff averaging 8 years in employment, with 1 on 2 years
2 Site managers - 3 and 9 years

Do any receive special perks or incentives?
No

Are they on contract?
A month to month basic employment contract

Do any have management potential?
Yes 1, maybe 2.

How involved is the Owner in running the business?
Owner is at the business on a daily basis - this is an owner managed and run business.

When does the current lease end?
December 2025.

The landlord has indicated that he is willing to sign a long lease with the new owner

Is there an option of renewal & what period?
Yes, 5 years at a time

What is the annual escalation %?
10%

What are the trading hours?
Daily from 10:00 to 04:00 to cater for bar and liquor licence

What is the square meters of the business?
Approx 2,160 square metres

Is a copy of the lease available?
Yes

Do you require a licence?
There are a few licences required

1. Liquor licence
2. Gaming licence
3. SAMRA licence for playing music
4. Food health and safety

What lease deposit and/or other surety is required?
To be negotiated with landlord on sigining new lease

What are the main assets of the business?
Business doesn't have big assets. The main assets are items you would find in a hotel room, dining room, kitchen and bar

Are any items not included in the sale?
Small items of personal nature

What is their overall condition?
Working and serviceable, in use daily

Do any require repairing?
General repairs happen as and when required

How have they been valued ?
At 50% of replacement value

Which assets are on lease/HP and with whom?
No assets on HP nor on lease!

Are they presently insured?
Yes

Strengths?
Fixed monthly revenue from Cell phone tower rentals.
Regular patronage from locals
Regular meeting place for various associations
Flexible offerings

Weaknesses?
Older building but aimed at the lower LSM's
Recent financial results show impact of weaker economy
No active social media presence
Can't make bookings online
Not all the bathrooms are en-suite

Opportunities?
Assertive marketing for:
- Venue for functions
- Additional entertainment evenings
- Additional gaming machines
- Outside catering

Threats?
Economic downturn and general inflation

What is the reason for the sale?
Owner retiring

Why is this a good business?
Business has multifunctional facilities to ensure a balanced revenue stream.
Long-term regular revenue from the cell phone towers.
Opportunity to create awareness of facilities on offer and to promote business by means of advertising and marketing targeted at hosting various functions will result in a definite boost in revenue.
Well-known in a quiet leafy suburb.