.JPG "Exquisite Properties")
What Is Offered For Sale
Financial Proposition
The business traded under the brand Villa Africa Boutique Hotel from May 2014. The Annual Financial Statements indicates an average 30% growth in the first five years. The turnover in 2015 was R1,69m, in 2016 it grew to R2,94m and in 2017 it reached R3,15m, going up to R4,8m in 2018 and R6,5m in 2019 and reaching R7,8m in 2020. (During this period, the bank account reflected an annual turnover of R8 292 282, which excluded R850K cash).
The Coronavirus pandemic led to a significant decline in the revenue in 2021 to R3m, due to Government restrictions which saw the occupancy drop to 2% for almost three months due to lockdowns and a ban on all weddings and functions. Fortunately, the business managed to recover in the last financial year and reached a revenue of R6.4m, in spite of continued restrictions. This growth is expected to increase once all restrictions are lifted due to an increased market share, with a forecast of R10m turnover and R1.5m net profit during the current financial year.
Revenue Streams
The business is profitable and can afford to spend more than R100K per month on equipment, repairs and maintenance to renovate and improve the hotel and R50K per month to pay back the shareholder’s loan to the owners. These expenses reduce the tax burden on profit, but it continues to pay the monthly tax obligation of about R40K VAT, R50K municipal rates and R6K PAYE.
The business has five revenue streams which includes:
Fixed Assets
The property is situated on a 1.241 Ha land in a dense urban area. The main building has 12 executive rooms and two restaurants, as well as a standard kitchen and an industrial kitchen. There are three blocks with eight rooms each which offers 24 standard rooms. On the eastern side is 12 large family rooms and two self-catering double rooms with a kitchenette. The event venues include a double lapa with boma, a banqueting hall, conference room and two restaurants. The beauty spa covers 355sq/m with six treatment rooms, a dressing room and a private patio with a jacuzzi.
Some of the energy-saving investments includes replacing of 34 warm water geysers with heat pumps and 22 aircons with inverters. The hotel was renovated to meet the four-star requirements at a cost of over R5m over the past four years.
Future Growth
The average occupation grew from 17% in 2014 to 48% in 2022, which allows for future growth potential, since the average occupation for similar hotels are 65%.
The hotel currently supports its shareholders and their families which accounts for 10% of the occupation, direct expenses of around R100k per month and interest on shareholder’s loan which accounts to R78K per month. Removing these expenses would also increase profitability.
Several international hotel groups are expanding in Africa, due to the expected growth in the sector. According to the McKinsey Global Institute, consumer spending on hospitality in Africa is projected to reach $2.1trn by 2028 and according to Ernst & Young’s Africa Attractiveness Survey, the African hotel and tourism sector is forecasted to grow by almost 17% in 2023 if the region continues to attract capital with investment in hotels which is set to hit $1.8 billion – up 4.2 percent from 2019.
Location
Pretoria is the seat of the country’s executive branch of government, the de facto capital city which also hosts the second largest number of embassies in the world as well as many government offices, including the office of the president in the Union Buildings.
The hotel is situated in Equestria, in the East of Pretoria. Seven upmarket residential estates, The Wilgers Hospital and The Grove Mall with a large offering of retail and restaurant brands can be found within a five-kilometre radius.
According to a report by Property 24, Pretoria East has seen above-average price growth over the last few years with the average price for a three-bedroom house at around R2.2 million and the midpoint rental at around R16 500 per month.
A major prospect is the Government’s plan to relocate parliament from Cape Town to Pretoria, a move which has been in discussion for a number of years, we saw a formal public bid announced in February 2019 and the Department of Public Works identifying a construction site in 2020. This is expected to lead to major growth of the hospitality industry in Pretoria.
Acquisition
To accelerate the growth, the ideal transaction would be an acquisition by a hotel group which will allow diversification and reduce the costs and overheads through shared marketing budgets, increased purchasing power and lower expenses. This will lead to increased revenue and market share.
The acquisition can be a cash-for-stock transaction or stock-for-stock transaction to facilitate either an asset purchase or equity purchase. Purchasing the business as a going concern would reduce the tax liability on future profits due to the historic loss on the financial statements.
The Operations
Business Units - Accommodation
This is the largest Boutique Hotel in the East of Pretoria and it boasts a 4 771 m² building which encompasses 50 rooms, five event venues, two restaurants with kitchens and a day-spa. It’s situated on a 1.241 Ha land with lush gardens, water features and large trees.
The en suite rooms include 12 spacious executive rooms with private gardens, a honeymoon suite, 24 Standard rooms, 10 Family rooms and two self-catering units. All rooms are equipped with a bathroom, individual air-conditioning, a 32” LCD Flat Screen TV, coffee/tea service tray, hair dryer, electronic safe and direct dial telephones. The executive rooms also offer extra-length king size beds, a bar-fridge and a private garden. All rooms have Wi-Fi access and the TV’s have a VOD player for IPTV and a decoder for satellite TV.
Events and Restaurant
The five event venues can accommodate from 10 to 350 guests which includes a conference centre, boardroom, lapa with boma, banqueting hall and two restaurants. The day packages for conferences offers standard conference equipment, a stationery pack, bottled water and catering for tea breaks and lunch. For weddings, the bride and groom can choose from five packages offering various catering options and facilities. The event venues are also popular for parties, anniversaries, baby showers, exhibitions and business gatherings.
A full breakfast buffet with hot and cold dishes are served from 7 to 10 in the breakfast room, which can seat 70 people. The restaurant is open for lunch around the pool and dinner, a la carte or buffet, is served in the restaurant with an adjoining bar which are open from 10h00 until 23h00 daily. The hotel has two fully equipped kitchens, the first for small functions and an industrial kitchen with a walk-in fridge and freezer, an extractor fan and other commercial catering equipment.
The beauty spa offers massages, facials, waxing, lashes and nail treatments in six wellness treatment rooms with a dressing room and a private outdoor patio with a jacuzzi. The Spa packages are very popular and includes breakfast or lunch and an overnight stay in the hotel.
Services, Facilities and Equipment
The services offered by the hotel include an 18-hour reception desk, 24-hour manned security, same day laundry, a specialised events team and skilled therapists in the spa.
The facilities include a swimming pool, undercover parking, children’s play area, six storage rooms, eight staff accommodation units and two workshops.
The equipment includes an industrial kitchen with walk-in fridge and freezer, a 60 Kva generator, electric fence, server room which host the network and a CCTV security system with 4 cameras. The hotel also owns a large collection of event decorations.
The public areas and rooms were renovated recently and energy saving investments were made to reduce the hotel’s carbon footprint.
Accolades
The financial records illustrate a solid growth with low management fees and a strong asset underpin. The business reached impressive revenue and occupation growth year-on-year during the first six years and achieved a good recovery from the Corona pandemic during the last financial year.
The hotel is rated number four in Pretoria East on TripAdvisor and boast an 8.2 out of 10 rating on Booking.com.
The owners paid a lot of attention to innovation and have full ownership of the IP for the property management system which includes a booking system for the spa and a channel manager which offers a direct link to the seven most popular booking agencies, allowing real-time updates.
The Business Rights is specified as “Use Zone 28” and classified as SPECIAL, which are rarely issued by the City of Tshwane and allows various activities to take place any day of the week, up until 4am. Uses permitted under Boutique Hotel includes places of refreshment, conference centre, social hall, health and beauty spa and related administrative offices.
Human Resources
The human resources consist of 36 employees managed by three directors and three managers. The staff allocated to each department includes Front Desk (3), Housekeeping and laundry (6), Events, bar and waiters (6), Kitchen (3), Maintenance (5), Security (3) and Spa (5).
The hotel received a four-star grading from the National Department of Tourism awarded by the Tourism Grading Council of South Africa (TGCSA) under two categories; hotel and conference.
All the Government regulations and requirements are met, including the site development plan with building plans, a Health Certificate and a Liquor License.
Accommodation
Our Boutique Hotel stands for a unique atmosphere, an excellent personal service and an outstanding cuisine, all at reasonable rates.
We offer five types of rooms, the standard rooms, the executive rooms, the honeymoon suite, the family rooms and the self catering units.
All Room Features
Venues
The hotel offers a selection of Venues to suit and accommodate Functions, Conferencing & Weddings. The are 4 venues at Villa Africa and these include the Restaurant which can host 50 people, the Boardroom which also hosts up to 50 people, the Lapa and Boma which can host up to 100 people and the pride of Villa Africa which is our Banquet Hall which can host 450 people comfortably for any type of function.
Our Venue Feature
Events And Conferences
The white pride of our Villa though, is our modern and stylish wedding venue, suitable for 350 guests and more. The hotel’s Wedding Events team will take care of your every wish and need.
Functions
The hotel is the perfect place to host Baby Showers, Birthday Parties, Conferencing, Year end Functions and Weddings. Our packages include a mouth watering Event Menu, a selection of your preferred hosting Venues, Service Staff such as Waiters, Barmen and Function Co-Ordinator.
Restaurant
The Restaurant is situated in the hotel and is connected with the outside courtyard and swimming pool. With a cozy atmosphere and a small bar area, it’s the ideal location for birthday dinners, baby showers and other small private events for up to 50 guests. When weather permits, the sliding doors to the adjoining patio and pool area can be opened, and you and your guests will have the possibility to enjoy your meal outside.
Beauty Spa
The Hotel's Beauty SPA is a haven that provides professional beauty and spa services. We offer an array of treatments such as massage therapy, facial therapy, microneedling, makeup, hand and foot treatments and waxing. We also offer night spa packages which includes accommodation in one of the luxury rooms here at our hotel.
Pretoria East
The City of Tshwane is the single-largest metropolitan municipality in the country, comprising seven regions, 107 wards and 210 councillors. Wards are delimited by the Municipal Demarcation Board (MDB). This entails the division of the whole geographic area of a municipality into smaller geographic areas, called wards. Schedule 1 to the Structures Act, 1998 provides for certain procedures and criteria to which the MDB must comply. The MDB must, amongst others, ensure that all wards in a municipality have approximately the same number of voters. The number of registered voters in each ward, may not vary by more than 15% from the norm (average). Thus there may not be a correlation between wards, neighborhoods, areas and suburbs. The seven regions are:
Region 1 – Soshanguve, Mabopane, Winterveld, Ga-Rankuwa and Pretoria North
Region 2 - Wonderboom, Sinoville, Montana, Temba, Hammanskraal
Region 3 – Pretoria CBD, Brooklyn, Hatfield and Pretoria West
Region 4 - Centurion, Irene and surrounds
Region 5 - Rayton, Roodeplaat, Cullinan
Region 6 – Pretoria East, Eersterust, Mamelodi, Shere
Region 7 - Bronkhorstspruit and surrounds
The wards in the regions are demarcated according to the number of voters.
Pretoria is one of South Africa’s three capital cities, serving as the seat of the executive branch of government, and as the host to all foreign embassies to South Africa. Cape Town is the legislative capital whereas Bloemfontein is the judicial capital.
Pretoria straddles the Apies River and extends eastward into the foothills of the Magaliesberg mountains. It has a reputation as an academic city and center of research, being home to the Tshwane University of Technology (TUT), the University of Pretoria (UP), the University of South Africa (UNISA), the Council for Scientific and Industrial Research (CSIR), and the Human Sciences Research Council. It also hosts the National Research Foundation and the South African Bureau of Standards. Pretoria was one of the host cities of the 2010 FIFA World Cup.
Pretoria is the central part of the Tshwane Metropolitan Municipality which was formed by the amalgamation of several former local authorities, including Bronkhorstspruit, Centurion, Cullinan, Hammanskraal and Soshanguve. Some have proposed changing the official name from Pretoria to Tshwane, which has caused some public controversy.
Pretoria is named after the Voortrekker leader Andries Pretorius, and South Africans sometimes call it the "Jacaranda City", because of the thousands of jacaranda trees planted along its streets and in its parks and gardens.
History
Pretoria was founded in 1855 by Marthinus Pretorius, a leader of the Voortrekkers, who named it after his father Andries Pretorius and chose a spot on the banks of the Apies rivier (Afrikaans for "Monkeys river") to be the new capital of the South African Republic (Dutch: Zuid Afrikaansche Republiek; ZAR). The elder Pretorius had become a national hero of the Voortrekkers after his victory over Dingane and the Zulus in the Battle of Blood River in 1838. The elder Pretorius also negotiated the Sand River Convention (1852), in which the United Kingdom acknowledged the independence of the Transvaal. It became the capital of the South African Republic on 1 May 1860.
The founding of Pretoria as the capital of the South African Republic can be seen as marking the end of the Boers' settlement movements of the Great Trek.
Boer Wars
During the First Boer War, the city was besieged by Republican forces in December 1880 and March 1881. The peace treaty which ended the war was signed in Pretoria on 3 August 1881 at the Pretoria Convention.
The Second Boer War resulted in the end of the Transvaal Republic and start of British hegemony in South Africa. The city surrendered to British forces under Frederick Roberts on 5 June 1900 and the conflict was ended in Pretoria with the signing of the Peace of Vereeniging on 31 May 1902 at Melrose House.
The Pretoria Forts were built for the defence of the city just prior to the Second Boer War. Though some of these forts are today in ruins, a number of them have been preserved as national monuments.
Union of South Africa
The Boer Republics of the ZAR and the Orange River Colony were united with the Cape Colony and Natal Colony in 1910 to become the Union of South Africa. Pretoria then became the administrative capital of the whole of South Africa, with Cape Town the legislative capital and Bloemfontein served as the judicial capital. Between 1910 and 1994, the city was also the capital of the province of Transvaal. (As the capital of the ZAR, Pretoria had superseded Potchefstroom in that role.) On 14 October 1931, Pretoria achieved official city status. When South Africa became a republic in 1961, Pretoria remained its administrative capital.
Pretoria is situated approximately 55 km (34 mi) north-northeast of Johannesburg in the northeast of South Africa, in a transitional belt between the plateau of the Highveld to the south and the lower-lying Bushveld to the north. It lies at an altitude of about 1,339 m (4,393 ft) above sea level, in a warm, sheltered, fertile valley, surrounded by the hills of the Magaliesberg range.
Climate
Pretoria has a humid subtropical climate (Köppen: Cwa) with long hot rainy summers, and short, mild winters. The city experiences the typical winters of South Africa with cold, clear nights and mild to moderately warm days. Although the average lows during winter are mild, it can get cold due to the clear skies, with night time low temperatures in recent years in the range of 2 to −5 °C (36 to 23 °F).
The average annual temperature is 18.7 °C (65.7 °F). This is rather high, considering the city's relatively high altitude of about 1,339 metres (4,393 feet), and is due mainly to its sheltered valley position, which acts as a heat trap and cuts it off from cool southerly and south-easterly air masses for much of the year.
Rain is chiefly concentrated in the summer months, with drought conditions prevailing over the winter months, when frosts may be sharp. Snowfall is an extremely rare event; snowflakes were spotted in 1959, 1968 and 2012 in the city, but the city has never experienced an accumulation in its history.
During a nationwide heat wave in November 2011, Pretoria experienced temperatures that reached 39 °C (102 °F), unusual for that time of the year. Similar record-breaking extreme heat events also occurred in January 2013, when Pretoria experienced temperatures exceeding 37 °C (99 °F) on several days. The year 2014 was one of the wettest on record for the city. A total of 914 mm (36 in) fell up to the end of December, with 220 mm (9 in) recorded in this month alone. In 2015, Pretoria saw its worst drought since 1982; the month of November 2015 saw new records broken for high temperatures, with 43 °C (109 °F) recorded on 11 November after three weeks of temperatures between 35 °C (95 °F) and 43 °C (109 °F). Pretoria reached a new record high of 42.7 °C (108.9 °F) on 7 January 2016.[13]
Geographical distribution of home languages in Pretoria
None dominant
The area contains a large number of historical buildings, monuments, and museums that include the Pretoria City Hall, Pretorius Square, Church Square (along with its many historical buildings and statues), and the Ou Raadsaal. There is also the Transvaal Museum (the country's leading natural history museum, which although it has changed venues a number of times, has been around since 1892), the National Zoological Gardens of South Africa (or more colloquially known as the Pretoria Zoo), Melrose House Museum in Jacob Maré Street, the Pretoria Art Museum and the African Window Cultural History Museum.
Several National Departments also have Head Offices in the Central Business district such as the Department of Health, Basic Education, Transport, Higher Education and Training, Sport and Recreation, Justice and Constitutional Development, Public Service and Administration, Water and Environmental Affairs and the National Treasury. The district also has a high number of residential buildings which house people who primarily work in the district.
Cliff Jacobs (Nat Dpl Hotel Man (UJ). MPRE. GA Level 5 TEFL) Managing Principal / CEO Exquisite Hotel Consultants (Pty) Ltd Mobile: +27 (0) 84 413 1071 / +27 (0) 61 716 6951 Landline: +27 (0) 21 554 0283 Email: cliff@exquisitehotelconsultants.com Skype: cliff.jacobs Web: https://www.exquisitehotelconsultants.com © All rights reserved Terms and Conditions apply Scroll down to view our Hospitality Properties and Businesses for sale or lease or lease-to-buy or partnership arrangement or management agreement arrangement
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We offer an international platform of specialist hospitality property and/or business brokering services by listing and marketing for sale or lease or by investment partner arrangement or management agreement arrangement of a variety of hospitality products (i.e. hotels, resorts, boutique hotels, guest houses, guest lodges, B&Bs, game resorts, wine farms, yachts, cruise liners, etc) through our association with EC Mobility (in Portugal and Spain), BON Hotels (Africa), Giovanni Conti (Italy, North and East Africa, Sri Lanka), Nuno Boquinhas (Portugal, Azores, Madeira, Mozambique), Property 24, Seeff Property Services, Harcourts, Realnet, RE/MAX, Dogon Property Group, Rawson Estates, among many other prominent commercial estate agencies throughout Southern Africa - and now we are entering other African Countries on the East and West Coasts of Africa and moving further abroad! To date, Exquisite Hotel Consultants has a presence in over 80 countries - and counting...
Working with the above-mentioned agencies and others provides the largest possible reach nationally and internationally for all prospective buyers and sellers wishing to enter or exit the Hospitality Industry.
Sister websites have been opened in the following countries: United Kingdom: see www.exquisitehotelconsultants.co.uk, and in Germany: see www.exquisitehotelconsultants.de, and in the United States of America: see www.exquisitehotelconsultants.us.
Please note that several of our hospitality properties and/or businesses for sale or lease or through business partnership arrangements or management contracts are officially "Off-Market" - mainly for privacy reasons. Therefore, they are not listed as part of our hospitality properties/businesses for sale or lease stock. Please contact me for further details.
Should you be considering to sell or buy or lease or obtain a partnership arrangement or management agreement arrangement for your hotel, boutique hotel, resort, guest house, B&B, game lodge, game resort, guest farm, yacht or cruise liner etc, I would be most pleased to provide you with further details of our way of working to effectively market and sell your property(ies) and/or business(es).
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Cliff Jacobs (Nat Dpl Hotel Man (UJ). MPRE. GA Level 5 TEFL) Managing Principal / CEO Exquisite Hotel Consultants (Pty) Ltd Mobile: +27 (0) 84 413 1071 / +27 (0) 61 716 6951 Landline: +27 (0) 21 554 0283 Email: cliff@exquisitehotelconsultants.com Skype: cliff.jacobs Web: https://www.exquisitehotelconsultants.com © All rights reserved Terms and Conditions apply Scroll down to view our Hospitality Properties and Businesses for sale or lease or lease-to-buy or partnership arrangement or management agreement arrangement