Hotel is ideal getaway close to Cape Town

Napier property offers rental income potential

THIS month will see Rawson Auctions Western Cape offering an opportunity to bid for an 18th century hotel in Napier, a property that promises both flexibility of usage and investment potential, says franchisee Tanya Jovanovski.

The Napier Country Hotel is centrally situated in the eponymous country village, which is located between Bredasdorp and Caledon. It is less than two hours’ drive from Cape Town, making it an ideal base for short day trips to the Overberg district, she says.

The 1 870m2 property currently offers hotel/B&B accommodation consisting of five bedrooms with 10 beds. There is an attached 15-bed dormitory, and a self-catering flatlet that sleeps six.

Jovanovski says the configuration of the hotel’s sleeping accommodation means the buyer would have two options to generate income from their investment.

The first would be to lease out the entire property, with all its sleeping accommodation, on a month-to-month basis.

She believes this would attract an estimated rental income of R39 000 a month.

The second option would be to convert the building back into a country hotel that could accommodate about 30 beds.

“If run as a hotel, the dormitory’s 15 beds could be let at R50 to R60 a bed a night; the B&B’s five rooms could be let at R550 a room a night; and the six beds in the flatlet could generate a rent of R50 to R60 a bed a night.

“This could be managed by one duty manager and a secretary to handle basic admin. The hotel would be an ideal purchase for a two-person team that wants to enjoy the benefits of country life and a liveable income.”

An alternative might be to convert the building into a retirement home.

Jovanovski says: “The ground floor features an office area, coffee shop, large sports bar and a fitted kitchen. A second kitchen, also on this floor, includes a big laundry, pantry and storeroom, and leads to a function/ entertainment space, which is large enough to seat about 60 people and flows to the pool area.”

On the first floor is a two-bedroomed penthouse, converted from seven of the original rooms by the present owner, with a large enclosed balcony, a private gym and a lounge.

Other facilities include staff quarters, two bars, a 24-seater restaurant, a 20-seater cinema with a big screen and surround sound, and a braai area and beer garden. The outbuildings include a chapel, two storerooms and a large underground wine cellar, all of which are currently empty.

The sale will also include all furniture and fixtures, and two liquor licenses that relate to consumption of alcohol on and off the premises.

The property will be auctioned at noon on August 15 at 222 Main Road, Rondebosch, the Rawson Property Group head office.

The reserve price is

R3.4 million, but all offers will be considered. The seller is registered for VAT, so no transfer duty will be payable.

No registration fee is required to bid. However, the buyer will be required to pay a deposit of 5% of the purchase price, as well as 10% commission plus VAT over and above the purchase price on the seller’s acceptance of the bid. Bidders are required to be registered and must have with them certified copies of their IDs and proof of residence.

For more details, call Deon Steyl on 079 302 6645 or Tanya Jovanovski or 021 837 1700.