Holiday Accomodation Letting Agency For Sale

Business description

This is a well established holiday accomodation letting agency and one of the largest agencies in the region, serving four adjoining coastal towns. There are more than 50 self catering holiday homes in the portfolio. Accommodation includes cosy 1 beroomed
apartments, medium size cottages sleeping up to eight persons, and luxury villas. All enquiries are dealt with electronically via the website, email and telephone.

The sales figures shown in the financial report are the total rental incomes for the properties. They have been shown to reflect the seasonal variation in rentals. Expenses shown reflect the information provided by the owner from the management accounts.

3 years financials are available to serious buyers only. The growth potential in holiday accomodation letting is very high. The size of the current portfolio could be doubled and the key operations expanded to increase income potential.

Apart from the two owners, there are no other full time staff members, The cleaning team is sub contracted as and when required. They are supervised by a lady who uses the owners own vehicle to transport them on and off site.

This business can effectively be run from a home office. All bookings and reservations are carried out electronically. Working hours are therefore flexable.

The business has 7 key facets. with operating systems developed by the owners over the years. Reservations, reception, housekeeping, maintenance, home owner liason, (contracts with all home owners exist, including sole rental mandates) financial and admin,
and marketing.
What are the seasonal trends The busiest period is between December and April and accounts for 80% of the annual income. As at 1st September 2008 there are 100% reservations over Christmas / New Year
and for the forthcoming December / January have already been confirmed and deposits paid by holiday makers.

Other information

Expansion potential:

Strengths: The tourism industry is one of the largest and fastest growing industries in South Africa. A Destination Marketing Organisation was recently established for the area which will assist
in attracting more international and local tourists to the region
Opportunities Property management for home owners could be expanded to cover more administrative and maintenance functions, eg repairs, painting, gardening services. The cleaning operation could be developed into a full time cleaning business. Long term rentals could be added to the current portfolio.

Reasons for selling:

The owners want to scale down their business activities to pursue personal interests. Both are actively involved in the community. They will not be moving and will be available for extensive handover and training.