Fully describe the business's activities?
This 9-BEDROOM Guesthouse, self-catering, on large 3,167 hectare plot has so much potential !
It also serves as a wedding venue and have been described by clients as a tranquil retreat nestled between two mountains, offering scenic views and a peaceful atmosphere ideal for relaxation and outdoor activities
Accommodation Overview
The guesthouse features five distinct units, each equipped with kitchen facilities (stove, microwave, bar fridge, tea/coffee station, crockery & cutlery), en-suite bathrooms, heaters and fans and all linen is provided and have lovely patios with outdoor furniture and braai (barbecue) facilities.
Guest Experience
The guesthouse is praised for its cleanliness, safety, and warm hospitality. Reviews highlight the privacy, practicality, and scenic beauty of the location, making it suitable for couples, families, and solo travelers alike
How long has the business been established?
136 years.
How long has the owner had the business?
6 1/2 years
How does the business operate on a daily basis?
The Property are self run with a Manager and staff. The owner lives in Cape Town
How are the clients attracted to the business?
They advertise on all booking platforms and their own Face Book Page.
Does the business have any contract work?
Some of the rooms are rented out on a permanent basis on contract.
What competition exists?
There are 5 other guesthouses in the town but this location boasts of being the best and safest location.
What are the seasonal trends?
The business peaks in Dec.
Although the winter months and Easter weekends are also very busy.
Is the business VAT Registered?
The Property is owned in a Trust and will have to be sold out of the Trust.
Are there up-to-date Management Accounts available?
The owner has Management Accounts but these include costs that is not related to the business.
For serious buyers, information will be provided to satisfy a ROI of between 8 % - 12%
What percentage of the business is cash/credit?
100%
How could the profitability of the business be improved?
Advertising, FOCUS, weddings, dedicated group tours, etc.
What is the total staff complement?
3
Give a breakdown of staff/ functions/ length of service?
The owners recently employed a manager.
There is also a cleaner, gardener and handyman
Are they on contract?
They are all full time employed.
Do any have management potential?
Yes - the manager can be further developed.
How involved is the Owner in running the business?
The owner handles all finances and bookings
What are the trading hours?
8h00 to 20h00
What is the square meters of the business?
3,167 hectares.
More Property Information
More info will be shared to approved buyers
What are the main assets of the business?
Guesthouse with some furniture.
Are any items not included in the sale?
Furniture - negotiable.
What is their overall condition?
Good
Which assets are on lease/HP and with whom?
Bond - Investec.
Strengths?
Scenic Location: Nestled between mountains in this amazing town, they offer tranquil views and a peaceful atmosphere.
Variety of Accommodation: Multiple units with self-catering facilities, en-suite bathrooms, and private patios.
Pet-Friendly: Welcomes pets by arrangement, appealing to traveling families and pet owners.
Online Booking Availability: Active on platforms like Booking.com and LekkeSlaap, making reservations convenient
Positive Guest Feedback: Reviews highlight cleanliness, safety, and warm hospitality.
Excellent location
Starting point for many mountain trails
Dam, game on the land, lots of space, lots of BBQ places
Magnificent mountain views
The guesthouse gets more snow than town
Weaknesses?
Remote Location: While scenic, the town is relatively isolated, which may deter some travelers.
Limited Digital Engagement: Facebook presence is modest, with few posts and limited interaction.
Seasonal Renovations: Renovations may disrupt availability or guest experience temporarily
Limited shops in town
Heavy rain or snow can cause problems.
Opportunities?
Social Media Growth: Expanding content and engagement on platforms like Instagram and Facebook could attract more guests.
Adventure Tourism: Leverage nearby hiking and 4x4 trails to offer packages or guided experiences.
Eco-Tourism Appeal: Emphasize sustainability and nature-based experiences to attract eco-conscious travelers.
Many other like - fishing tours, hiking tours, biking tours, art gallery and expanding their clothing range.
Threats?
Weather Dependency: Outdoor activities and scenic appeal may be affected by seasonal weather.
Local Competition: Other guesthouses or B&Bs in the Eastern Cape may offer similar amenities.
Economic Factors: Travel budgets and tourism trends can fluctuate, impacting bookings as well a petty theft / crime in town.
What is the reason for the sale?
The owner wants to keep his focus in Cape Town.
Why is this a good business?
Established Business with Online Presence
Already listed on platforms like Facebook, Booking.com, and LekkeSlaap.
Has a base of positive reviews and returning guests.
Scenic and Unique Location
Nestled between mountains, it offers a peaceful, nature-rich experience that appeals to eco-tourists and those seeking a retreat.
Self-Catering Units
Reduces operational costs (e.g., no need for full-time kitchen staff).
Appeals to a wide range of travelers, including families and long-stay guests.
Expansion Potential
Opportunity to add more units, offer guided hikes, or develop eco-tourism packages.
Could enhance digital marketing and social media presence to boost bookings.
Lifestyle Business
Ideal for someone looking to live on-site and enjoy a slower, nature-oriented lifestyle while running a business.
Ideal Buyer Profile
Hospitality Enthusiast or Retiree
Someone looking for a lifestyle change, possibly semi-retired, who enjoys hosting and nature.
Eco-Tourism Entrepreneur
A buyer interested in sustainable tourism, who can develop nature-based experiences like hiking, birdwatching, or stargazing.
Digital Nomad or Remote Worker
Someone who can manage bookings and marketing online while living on-site.Small Business Investor
An investor looking for a manageable, income-generating property with growth potential in the tourism sector.
This is the best property in town in the Drakensberg
Literally a farm in town - which can be started again.....