Eco lodge in the Drakensberg Mountains, South Africa for Sale
Posted September 20, 2019 at 8:53 am by aattwood

Eco lodge in the Drakensberg Mountains, South Africa for Sale

Pricing is in South African Rand. If you’ve ever dreamt of dropping out of the rat-race and being your own boss, then Antbear Lodge ticks all the boxes. It’s a lifestyle business where the bulk of your living costs are paid for. Any salary taken is effectively disposable income.

The lodge allows for an idyllic country living lifestyle and if kept as is already runs profitably on its own with a management team in place. However, if you would like to optimise these returns and become more hands on with the running of the business then profit margins will increase substantially. Although already a great business, the occupancy levels are still low enough to scale significantly using the existing room infrastructure. And there are also easy opportunities to expand on the existing room infrastructure without the need to expand on the lodge infrastructure which has already happened. Antbear Lodge has a great reputation and rating. The location is prime and perfect for offering a base for the huge range of tourist attractions offered in the Kwazulu Natal Midlands as well as the Drakensberg and the lodge offers exceptional views to boot.

The sale is a hospitality business as a going concern and include the contents of the lodge. Your return on investment for the business is better than 20%. A long term lease is already in place and should you decide to buy the property at a later date you will have first option of refusal should it become for sale. There are also plans in place to subdivide the lodge from the farm and should this subdivision be granted you will have an option to buy `just the subdivision at market value should you wish to do so. There are excellent opportunities to scale the business further as well as diversify into other income generating opportunities

Details

Total Revenue
R3 500 000
Gross Profit
R2 500 000
Net Profit
R700 000
Company Establish Year
2000
Ownership
Full-Time
Total no. of Employees
6~10
Reason for Letting Go
My wife and I are moving into the next stage of our lives. We both have a newly discovered passion for travel which we would like to realise before we are too old to do that. While shorter trips have been possible leaving the lodge in the capable hands of our staff, to travel the world for a number of years is currently just not an option. So while we are not in a desperate situation to urgently sell we are also chopping at the bit to explore the world. We love living here and hope to continue for a number of years to come. Antbear Lodge has been exceptionally good to us and it is with pride that we pass on this legacy to someone new.
Physical Location Status
spectacular view looking out onto White Mountain and the Drakensberg Mountains
Rental Cost
R25 000 p/m
Terms for Lease
long term lease
Physical Location Details
south africa, Drakensberg Mountains
Relocate Business
no
Home-Based
live in business
Facilities and Equipment
R1 000 000 included in price
Competition Level
There is insignificant competition nearby. The nearest Lodge is Blue Haze which services a more local market and the rep market staying in Estcourt and some limited tourism. Rates are slightly lower than that of Antbear but does not really offer a similar product to Antbear. The Nearest lodge offering a similar sustainable tourism product is Three Tree Hill Lodge which is 90km from us. And Rates are more than double that of Antbear. Other established accommodation products within a 30km radius of Antbear include Cleopatra Mountain Farmhouse, Silver Hill Lodge, White Mountain Lodge, Hartford House, Sycamore Avenue, Lords of the Manor, Giants Castle Camp, Zulu Waters Private Reserve. For the most part there is active cooperation between Antbear and its neighbours.
Potential for Expansion
Easy expansion opportunities to create another 3 rooms by creating internal walls and bathrooms in an existing storage area. The existing utility infrastructure can be used for water, power and waste water. There are options to create another 4 luxury caves that would be 100% private (invisible) from each other. More if total privacy is not considered necessary. The lodge infrastructure is already sized such that it can cope with this expansion. Even expanding by another 10 rooms there would be no need to extend the communal lodge facilities as they already are big enough to cope with that expansion. The nature of the business profitability with its relationship to variable costs and occupancy can be demonstrated. Calculation of food costs, variable costs and fixed costs as per excel models show just how much potential can still be achieved. According to SAT 8% of arrivals to South Africa visit Kwazulu Natal. The Drakensberg and Midlands are both icons of Kwazulu Natal as such are great assets to attract a healthy portion of this market. The Drakensberg and Natal Midlands are both very desirable wedding celebration destinations also making this a lucrative market.
Seller Funding Available
yes - Owner financing can help sellers sell faster and help buyers purchase this business even if they would be unable to secure a traditional bank loan. We would be prepared to sell Antbear Lodge on an owner financing model with a down payment of R2m and the balance to be paid over 5 years at an interest rate of prime plus 1. The 5 year business plan shows that this financing is a viable option.