Historic hotel in Napier offers good investment
A great investment opportunity is being auctioned by Rawson Auctions Western Cape.
The 1,870m² Napier Country Hotel has been altered and operates as a five-bedroom (10-bed) hotel and bed and breakfast, with a 15-bed dormitory and six beds in a self-catering flatlet.
The 18th-century hotel is centrally situated in Napier, a small village between Bredasdorp and Caledon and less than two hours from Cape Town.
There are two investment options for buyers to consider. The first is leasing it as a rental investment, where the property, which has 30 beds, can be let on a month-to-month basis. The income for this option is R39,000 a month.
The second option is to maintain the building as a country hotel. This would also allow for about 30 beds.
If run as a hotel, the following would apply: the dormitory’s 15 beds can be rented at R50 to R60 a bed per night.
The bed and breakfast’s five rooms can be rented at R550 a room per night and the flatlet can rent its six beds out at R50 to R60 per bed per night.
This is easily managed by one duty manager and an office secretary. It is therefore an ideal purchase for a two-person team who want to enjoy the benefits of a country life with the added benefit of a liveable income. The property could also be converted into a retirement home.
The ground floor has an office area, coffee shop, large sports bar and fitted kitchen.
A second kitchen has a large laundry, pantry and store room leading to an entertainment area, which is large enough to seat about 60 people.
On the first floor is a twobedroom penthouse — converted from seven of the rooms — with a large enclosed balcony, a private gym and lounge.
Other facilities include staff quarters, two bars, a 24-seater restaurant, a 20-seater cinema and a braai area and beer garden. The outbuildings on site are a chapel, two store rooms and a large underground wine cellar. The sale includes all furniture and fixtures and two liquor licences (consumption on and consumption off).
“The name Napier Hotel dates back to 1838 when it functioned as a 12-room country hotel. Since then there have been five owners who in turn made various alterations according to their individual requirements. The current owner, an 83-year-old man from Cape Town, bought the property six years ago and he completely renovated with new electrics, plumbing, roofing, gutters and downpipes,” said Rawson Auctions.
The property will be going on auction on August 15 at midday at Rawson’s head office at 222 Main Road, Rondebosch. The reserve price is R3.4m.