The boutique, elegant, charming, private hotel is situated on 5.9 hectares (app 14.5 acres) property with 177 meters beach front on the shore of the Indian Ocean, own very own fresh water supply, 18 km from Stone Town, in a very quiet neighbourhood with no village or other business establishment within a 1500m radius.
It is a thriving, established, highly rated in tourism industry, 16th of all in Zanzibar on TA, 9.4 rated on Booking,
12 villas of which 7 large, luxurious, with own pool with current machines, private lush garden and beach access, patio, gazebo with mosquito net; and of which 5 garden villas, finished with an artistic African touch. Large Italian terracotta pool.
The in house restaurant is of exceptional style and quality of food with nice barbeque and bar area, library within eco-gardens with local spices and visiting bush babies.
A Coral reef can be admired straight from the 100m long own jetty where several spices of local colourful marine life can be seen without even taking a swim.
Hotel has own traditional boat for the guest to enjoy sunsets. There is still a tremendous potential for further development even without changing much of the infrastructure which allows further building of new villas.
This is a sound and unique business opportunity to be proud of.
Add on another 5 villas and while keeping a boutique character, with the same infrastructure/media and well trained staff the profits may increase by even 50%-100%, as such villas are in high demand.
The restaurant with its fantastic Chief is excellent and may present the extra opportunity on its own, as well as a possibility to have a small conference center.
VALUATION RATIONALE
Achieved high income levels in recent years (2016-2020):
Annual average occupancy: 59%, 71%, 70%, 69% in consecutive years
EBIDA of: 628ths, 460ths, 269ths, 212ths USD with
7 villas priced at 654USD and 5 villas priced at 336USD. (the room yield reflects the occupancy rates it may be even higher as the clients spend money in the bar, restaurant, excursions, spa).
The EBITDA decrease in last years was due to the loss of one villa, conducting major repairs and maintenance works and management restructuring issue.
Potential EBIDA for next 4 years if investing additional 350ths USD for 5 villas – would be 1,4 mln. USD assuming similar occupancy rates.
