.JPG "Exquisite Properties")
ASKING PRICE: R 59 MILLION
1. Executive Summary
South Africa's scenic beauty, magnificent outdoors, sunny climate, cultural diversity and reputation for delivering value for money have made it one of the world's fastest growing leisure - and business - travel destinations.
International travel to South Africa has surged since the end of apartheid. In 1994, the year of South Africa's first democratic elections, only 3.9-million foreign visitors arrived in the country. By 2006, international arrivals had more than doubled to 6.7-million, and by 2016 over 10 million tourists visited this country. Tourism has un unbroken growth record since the 2008/9 economic crash, and international experts are optimistic about future growth of international tourism, as Europeans, American and Asians will grow 57% over the next ten years (2017 Annual Tourism Report, SA Tourism).
Directly and indirectly, tourism constitutes approximately 7% of employment in South Africa. Ideally placed to create new jobs and to add value to the country's many natural and cultural resources, tourism has been earmarked by the government as one of SA's growth sectors.
This makes the outlook for the industry extremely positive.
The country's private game lodges have also grown substantially in the last 10 years, ranging in standard from middle to very upmarket, with ultra-luxury lodges catering almost exclusively to foreign tourists. Sabi Sands reserves report full occupancies for six months hence.
Our Farm was first purchased in 2002 by our family, and developed into a macadamia and rose farm. In 2006 the Kitchen was added, and in 2007 we designed and built the Retreat and Rose Spa. The latter are all made from natural materials, timber and canvass, and overlook the perennial Sabie River. In 2009 our Café followed; in 2015 a timber premier suite was added, and in 2017 the old Farmhouse and Stonehouse were renovated for families. Investment in excess of R40m has been spent on these developments.
Our Eco Estate has evolved into a landmark in the Hazyview tourism and an international destination of acclaim, and has focused much of the marketing attention to attract foreign independent travelers (FITs). Occupancies have risen steadily despite the downturns to just over 40% in FY2019, yet still lagging the industry significantly.
Related to a growth in accommodation are other lifestyle activities, such as meals, drinks, spa, and game drives and other activities. Historically our Eco Estate’s ADR is doubled by these activities.
The company has recently signed marketing agreements with major industry representatives in the UK and Germany, with a track record of building sustainable business models for South African properties.
Occupancy and ADR (average daily revenue) are the main drivers of any hotel business, with the national occupancy average just short of 80%, and projected to grow to 88% over the next five years (see PWC report, 2017-2022). This is the greatest opportunity for our Eco Estate and similar owner-managed small boutique hotels, which has experienced growth of 30% over the past year in hotel revenues.
Our Eco Estate has grown room revenue by 28% over the past year, to achieve an overall occupancy of 41%. It had a turnover of R16m and EBITDA of R5m. It is projected to grow occupancies to 55% by FY 2020, and 85% by 2023, and profits to render an IRR in excess of 30% over the same period.
The management team is headed by our GM, who has spent many years in five star game lodges such as Madikwe and Lion Sands. The financial manager has been with the company for three years, and marketing is directed bythe owners' son-in-law. He has 25 years of hospitality experience and knows our Eco Estate intimately. He is supported by his assistant, who has an intimate knowledge of luxury brands.
As the current owners wish to downgrade their active involvement, it is envisaged that they will retain a small portion of the current property and are available to hand over and consult to new owners for a limited period.
2. The Objective
The purpose of this document is to detail the marketing efforts of the company for the next five years.
Primarily all endeavors of the management team are focused on driving occupancy levels to five star industry levels in excess of 80%.
The company has been revitalized with a new and dynamic management team to achieve this goal, and long-term investment funding is being solicited to facilitate such an objective.
3. The Product
A 5-star Luxury Retreat on the Sabie River – 11 secluded Tented Suites, a new Luxury Suited Tent and a Forest Suite.
Our Eco Estate is, without doubt, the finest accommodation in Hazyview, a really unique experience.
Just 10 minutes from the Kruger Park and close to Panorama Route – the perfect place to relax.
2 award-winning restaurants, a sumptuous spa. macadamia and litchee orchards and more.
Kruger Park Safaris, Panorama Tours and many other activities in the area.Our Eco Estate is also the home of Duke Gin. Launched in 2018, we now have 4 different gins.
ACCOMMODATION
The suites have outside bathrooms overlooking the Sabie River.
These units have an open plan bedroom and bathroom with a large veranda overlooking the bushveld.
IN THE AREA
DUKE GIN
Our Eco Estate is also the home of Duke Gin. Launched in 2018, we now have 4 different gins.
Now available at selected stores countrywide, or come to our Estate and try it for yourself.
From farm-to-bottle, the entire process is carried out on the farm to make sure that Duke Gin is pure, clear and sumptuous. Even the botanicals that give Duke Gin its distinctive taste are mostly grown at our Estate.
Duke is an exotically fragrant gin - traditional and tropical botanicals are gradually infused during distillation to produce a balance between sweet, fresh hints of rose, ginger and honey, and grounded, earthy tones of juniper berries and macadamia.
Duke Gin was started in 2017 in an attempt to save the sunny litchi orchards of our Eco Estate. A tricky and risky fruit to export, the economic viability of litchi farming was on a rapid decline, and the decision to replace them with macadamia trees had all but been made. It was at this point when the Owners' entrepreneurial spirit took flight. After a gin course in Johannesburg and later a course at iStill in Amsterdam, He was hooked on mastering the distilling process and entered a whole new world of copper stills, litchi fermentation and juniper berries. Today the Duke family has grown from the Original Litchi to a more traditional London Dry called Sportsman as well as a 6 month barrel aged Copper and a non-alcoholic Duke Zero.
Distribution channels have been opened in the Lowveld, KZN, Gauteng and the Western Cape – and is widely available through Norman Goodfellows, Spar Tops and Liquor Cities. Export orders from Germany has commenced and UK interest is growing significantly.
4. Target Market
There are two distinct target markets:
Foreign Independent travelers (FITs).
Domestic tourists.
The local market consist of two segments:
5.Unique Selling Point
'"Away from all the Touristy circuit, is this amazing Glamping experience in a fully operational Macadamia & Litchi Estate!
Owner-driven, this retreat is just what you require IF you are overworked, stressed out with all the happenings of this world and is desperately seeking solace, peace, serenity, calm and bliss!! All in one place - WOW!!
Have been in Southern Africa for the past 10 days and after quite an active 3 nights in VIC falls, we selected this haven to sit back, relax, rewind, rejuvenate and reminisce the wonderful journey of life till date, before we move onto the Safari Lodges...
We stayed in the Forest Room , the highest category tent in this retreat (total inventory I think is about 11 tents and 1 Forest Room).
The Forest Room is a serious Glamping site with thick greens all around , a cozy heated bed, a standalone bath tub in the centre of the room, a beautiful deck overlooking the wonderful gardens, lovely amenities with roses all around. Absolutely romantic and blissful.
We also used the Spa twice each and it was absolutely wonderful. Well trained masseurs, knows their strokes very well and the oils they use are seriously rejuvenating.
Food: Stunning! All veggies fresh from the garden directly, what an high quality selection of cuisine. Wow! Very well presented & plated too.
Near the spa, there is a beautiful river stream flowing through. You can just sit there for hours just listening to the waters flowing by and just pampering yourself to this amazing natural environment.
Walks: If you love walking, it cannot get better than this. Fully operational Macadamia & Litchi farms with winding roads , fully secure ..... A taste of the real Africa!
This retreat is certainly NOT for people who are looking for activity, gaming, sightseeing etc.
It is incredible for people who just want to have "Me Time", pamper yourself with a wonderful spa, have some amazing organic high quality cuisine, this is THE place for you!!”
Absolutely PROUD of the owners who have created this paradise.
Jack the F & B Manager who also is the AGM of this retreat, is absolutely customer friendly & focussed. We wish him and the owners the very best in taking forward this dream retreat. Lawrence is a super star too in the restaurant with Khunya supporting him with a lovely African smile!
We have passed on some constructive feedback to Jack for improving some areas, so as to make it a even better retreat for future guests. All the very best!!”
6. Call to Action
Desired outcomes:
Pull-through Actions:
Project Plan:
7. Financial Projections
High Road Scenario:
Low Road Scenario:
Budgeted Scenario:
8. Financial Requirements
Joint Venture/Outright sale.
Possible Exit Strategies.
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 Web: https://www.exquisitehotelconsultants.com C/o Sybelstrasse 69 10629 Berlin GERMANY © 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
Name: BondExcel Mortgage Origination
We interface with all of the major banks in South Africa to ensure that you get the right home loan solution at the best possible rate.
Looking forward to assist you with your home loan application!
Name: Businessentials For Hospitality Hospitality Consulting, Accounting, Bookkeeping and Payroll Services
Name: Capital Efficiency Group Corporate Finance, Tax & Accounting and Treasury Services.
Name: Cliffe Dekker Hofmeyr Inc Attorneys, Notaries and Conveyancers
Name: D E I R D R E R E N N I E R S Interior Design Interior Design
Name: De Leeuw Valuers Cape Town Property Valuation Services
Name: E C Mobility International property, law and immigration
Name: Edward Tokolo Kasete Real Estate Specialist - Our Associate in Namibia
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).
Name: Electrolux Professional Food Service, Beverage and Laundry Solutions
Electrolux Professional is a leading global provider of foodservice, beverage and laundry solutions, serving a wide range of customers globally, from restaurants and hotels to healthcare, educational and other service facilities.
Name: Exquisite Hotel Consultants' Hospitality Training Department Learn to speak Hotel English (one-to-one online course)
Our TEFL trained tutors teach the following functions
The course consists of 21 lessons (4 to 5 one-hour lessons per month).
Name: FVE Interiors Interior Design
Name: Healing Earth Hotel Amenities - inspired by Africa
Name: Hospro Hospitality Consultancy and Procurement
Name: Hotel Revenue Management Revenue (yield) Management
Online room inventory Distribution & Rates optimisation
Implementation of Best Available Rate (BAR), in conjunction with point 1 & 2
Name: Indigo Real Estate Agency Real Estate Agency - Our Associate in Mozambique
Name: Lisa Dunn - Tourism Grading Assessor Tourism Grading Assessment
Name: Ooba (Pty) Ltd Mortgage Origination
ooba offers you:
Name: SK Sambu Tours & Transfers Johannesburg based Tours & Transfers Operator
We look forward to being of service to you.
Kind regards
King Sambu
Name: Soul Private Collection Hotel Management and Marketing
Name: The Dumb Butler Hospitality Suppliers Hotel Linen Suppliers
LUX Award Winners 2021 for The Best Hospitality Suppliers. We are a proudly South African brand established in 2006.
We Supply:
Name: The High Street Auction Company
Property Auctioneers
Appreciating Property Value
Name: Touch Point Retail Smart Interior Design
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 Web: https://www.exquisitehotelconsultants.com C/o Sybelstrasse 69 10629 Berlin GERMANY © 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