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R23,000,000

Monthly Rates
R1,000 Excl. VAT

Guest lodge close to O.R tambo international Airport for sale

The lodge and Guest House with Hotel rights operates in close proximity of the O.R. Airport in Kempton Park (5 Km).Boasting 76 rooms the Lodge can accommodate up to 120 people.The Lodge consist of two individual registered properties (1,47 Hectares) which can be sold separately.The first section consists of: the main building which includes the reception/admin office, dining room, kitchen, laundry, luxury units as well as student accomm.,15seater conference room and entertainment area.40 x Rooms (en suite)(which is 3 star graded),3 x standard rooms (en suite),9 x executive rooms (en suite).The second property consist of Townhouses which is used as part of the Lodge:These townhouses once sold should generate an estimated amount of R14 920 000.00.Due to high demand for accommodation the owner decided against selling the units.8 Town Houses (96ms) with 2 x bathrooms,3 bedrooms, Lounge/Dining room, patio and braai per unit.(4 x ground Units with private gardens and 4 x 1st floor units).8 Garages (which can be changed into additional units should the need arise)16 x Bachelor flats (en suite) with kitchenettes.(8 x ground floor units),(8 x1 st floor units).PRODUCT AND SERVICE:The Lodge offers accommodation for the corporate business executive and leisure industry of which the self catering units is ideal for families.The Trainees/Students accommodation as well as competitive pricing has created a niche in the market in an area which has given the Lodge a great advantage over its would be competitors.Essentially the leisure market would book during the weekends and holidays.During the week the corporate market generates constant repeat business but the core business of the Lodge however has been reservations made by Companies and groups for their trainees which can range anything from 10 to 40 students at a time and can be from one day to 8 months at a time.This constant repeat business from the various existing clients varies between 75 and 85%.Occupancy during the year varies constantly between 65% and 75%.This coming December will be the first time the Lodge will be 100% fully booked, confirming that the business expanding all the time due to our professional service, care and the quality for our product. INDUSTRY AND ANALYSIS:The accommodation market in South Africa enjoyed its third consecutive year of strong growth since 2014 and it is reported that by 2019, the overall occupancy rate in all sectors will continue to increase, rising to an estimated 58.3% from 54.4% in 2014;According to reports, Johannesburg is the leading business destination in S.A. and hosts numerous conventions that attract both domestic and international participants.The lodge can expand its convention side and offer conferences which has not been utilize at all. TARGET MARKET: Due to the nature of their varied accommodation and close proximity of the Lodge to O.T. Airport (connecting flight passengers - flying onward , the next day passengers) and the various Airline training facilities in the area our target market ranges from the corporate executive to the discerning traveler to students from all walks of life.The Lodge offers short and long term accommodation, making all Companies with a training program sought after clients, such as ATNS, MATA, Future Flyers, Denel, Esselen Park.It is important to bear in mind that as the company is owner managed and not BEE compliant and once it does change the possibilities are endless, especially vying for that sought after Government contracts!COMPETITOR ANALYSIS:
The Lodge has customized and fine tuned its uniqueness making it a leader in the hospitality industry.The product, location, demand, competitive rates and professional service offered finds- the Lodge/Guest House in a different league from its would be competitors which in fact supplies the Lodge with clients they cannot accommodate.Although there are plus/minus 80 guest houses around the airport - facilitating 2-9 rooms per guest house, there are only a few (plus/minus 8 guest houses/lodges that can cater for groups of 20 guests,SUPPLIER ANALYSIS:To constantly maintain a high level of "web Presence" (Listed with the biggest booking agents in the industry such as SA Venus, Lekker Slaap, Rooms for Africa, Booking.com, Travel ground and Expedia)
Companies with training programs as well as Travel Agencies and tour operators are targeted.Airlines with training facility are potential clients,Government departments,Universities and colleges,Hotels and Guest Lodges in the area are another source of obtaining guests (because of our excellent relationship lodges will send us guests they cannot accommodate).Of course the most important marketing tool is a satisfied customer and by word of mouth!
OPERATIONAL ANALYSIS:The reception area is manned by 3 staff members (having accommodation available on the premises for members of our staff we are able to offer a 24 hour service to the tourist.),Full English breakfast is supplied (or continental breakfast as required)(2 chefs and a couple of assistants.Lunch, Dinners/ braais and Alcoholic beverages are on request.Rooms and units are cleaned on a daily basis by 6 full time staff members.A gardener keeps the property pristine.Transport to and from the airport is arranged by a full time driver.At night a watchman/security guard patrols the ground. The owner manages the business in its entirety.
MANAGEMENT AND HR:With 25 years experience in the hospitality and tourism industry the Lodge owner have managed and operated a successful Guest House and Lodge assisting the various staff that work on a shift basis to cover early/ late hours as well as weekend. They have supplied a service and filled a niche in a demanding market.INTERNAL AND EXTERNAL RISK:All possible precautions are taken to secure the safety and the assets of the clients.The property has electric fencing, security cameras, night watch and a 24 hour armed response linked to an alarm.Companies are held liable for damages and payments made by their clients.In the event of bad debt it is advisable to procure insurance to cover the cost.The well trained staff are handpicked and the lodge is Managed by the owner reducing the risk of shrinkage and pilfering.SOCIAL-ECONOMIC BENEFITS:Studies show that the guest houses contribute to the local economic development through procurement of locally produced products and services and tourism has come to be seen as a key driver for local economic development in South Africa as it provides opportunities for the poor and the unemployed.The Lodge has a lot of potential to expand and be of service to the community.FINANCIAL ANALYSIS:Situated near O.R. Tambo Airport and close to various training centre's you are guaranteed of a steady and reliable source of income (Part of the Aerotropolis plan)The Lodge and Guest House is being sold "vootstoots" with all its contents.This is a fantastic opportunity to obtain a profitable, going concern with audited financials and lots of good will which have been in place for 23 years.The present owner is prepared to assist the buyer for a transitional period for 6months.It is imperative that the new owner make use of this offer as there is contracts in place for next year.The reason for sale is the seller is retiring.There is no mortgage bond on the property or outstanding debt.The company is VAT registered.The lodge has been run effectively by having well trained, effective and happy staff which minimized staff turnover and in turned makes happy customers.To avoid cancellations and the inconvenience of load shedding a large generator was installed at a cost of R 220 000,00.A cost effective a Heat pump was installed - operating 20 rooms at this stage Maintenance is done on a daily basis by the resident maintenance man.Borehole, pump, tanks and pressure Tank assist with the cost of the water bill.The new owner can start operating the Lodge/Guest House immediately on registration!

Features

10
40
Title:
Freehold
Zoning:
Commercial
Interior
Air Conditioning
Yes
Power 3 Phase
Yes
Exterior
Security
Yes
Sizes
Floor Size
2,000m²
Land Size
14,700m²
Parking Bays
Covered Parking Bays
10
Open Parking Bays
40
Extras
All a guest lodge can offer and more.Lock stock and barrel,Furniture to vehicles
 
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