Wednesday, 7 October 2015

Namibia: iconic Bay View Hotel Luderitz is for sale | Бей Вью отель Намибия

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The iconic Bay View Hotel in Luderitz is for sale. This is a once in a lifetime opportunity for individuals or business entities, who want to own a business in this well-kept secret of a historic town.

The hotel is as much a landmark and part of the history of Luderitz than the old town itself. Situated right in the middle of town, within walking distance from anything you may need and a stone's throw from the lagoon, this hotel has successfully catered to tourists, business travellers and overlanders for decades.

Asking Price: on request
 

Highlights

    Situated in the centre of Luderitz.
    Walking distance to shops, restaurants and the waterfront.
    24 Spacious rooms.
    Average of 41% occupancy throughout the year.
    Comfortably owner operated.
    Secure courtyard layout with sparkling pool.
    Restaurant and fully equipped kitchen.
    Cozy pub.
    Regular client base consisting of business travellers and tour groups.
    Strong growth opportunity.
    Massive economy boosting project planned for Luderitz.

°    Selling well under value!
°    WSituated in the centre of Luderitz
°    Walking distance to shops, restaurants and the waterfront.
°    24 Spacious rooms.
°    Average of 41% occupancy throughout the year.
°    Comfortably owner operated.
°    Secure courtyard layout with sparkling pool.

Property Details
 

STREET ADDRESS

The subject property is situated in Diaz Street, Luderitz.
 

PROPERTY DETAIL

    Deeds Registry: Windhoek
    Property Type: Hotel
    Erf Number: 680
    Region: Karas
    Town: Luderitz
    Registration Division:
    Local Authority: Luderitz Town Council
    Title Deed No: To be Announced
    Extent: 2 230m
    Endorsements: To be Announced
    Zoning: General Business
    Free hereditary tenure: Yes
    Servitudes: Standard as per title deed.

TOWN PLANNING CONDITIONS
    Zoning: General Business
    Coverage: 85%
    Height: To be determined in terms of bulk
    Bulk: 2
    Building Lines: On rear, front and side boundary

MUNICIPAL VALUATION

    As per the General Valuation Roll of Luderitz Town Council, the land and the improvements were separately valued as follows:
    Land N$ 204 000.00
    Improvements N$ 1 672 000.00
    Total N$ 1 876 000.00

AVAILABILITY OF SERVICES

    Fully serviced by the Luderitz Town Council with water, electricity, storm water drainage and refuse removal.

SITE AND LOCATION (DEMAND/CAPITAL GROWTH ETC.)

    Classification (Rating out of 5)
    1 Year 3
    3 Years 3
    5 Years 3

Macro and Micro Locality

    The subject property is located on the western boundary of the CBD of Luderitz. Access to and from the property is obtained from Diaz Street, a semi-arterial route connecting various areas within Luderitz, accordingly enhancing the visibility and accessibility of the subject property.
    The subject property has a beautiful view over the ocean/harbour.
    The immediate area mainly comprises of business properties, commercial properties, restaurants, etc.
    All applicable amenities such as medical facilities, schools, public transport, places of worship and restaurants are available in close proximity.

    Situated in the centre of Luderitz.
    Walking distance to shops, restaurants and the waterfront.
    24 Spacious rooms.
    Average of 41% occupancy throughout the year.
    Comfortably owner operated.
    Secure courtyard layout with sparkling pool.
    Restaurant and fully equipped kitchen.
    Cozy pub.
    Regular client base consisting of business travellers and tour groups.
    Strong growth opportunity.
    Massive economy boosting project planned for Luderitz.

Valuation Details


DESCRIPTION OF THE PERMANENT STRUCTURES & IMPROVEMENTS

    The subject property can best be described at hand of the following:
    Structure: Conventional brick and mortar constructions over concrete foundations.

GBA m2    Main Building    320 m2

Guest Accommodation    499 m2

Outbuildings    102 m2

    Storey: Single storey
    External Walls: Plastered and painted brick
    Internal Walls: Plastered and painted brick
    Floors: Ceramic tiles, carpet
    Ceilings: Celotex
    Lighting: Standard i.e. boxed fluorescent lights, pendants, ball lights, etc.
    Glazing: Wooden frames
    Condition: Average to Good


Accommodation Including:

    a) Main Building: Entrance, 2 offices, bar, men's & ladies ablution, store room/kitchen, pantry, kitchen, scullery, dining hall, conference room.
    b) Outbuildings: Reception office, store room, cold room, laundry, separate shower/wc/basin, 2 courtyards, covered patio, bath/wc/basin, guard house, etc.
    c) 24 Guest Rooms: Each Guest Room including a bedroom & bathroom.
    d) Minor Improvements: Walling, paving, fencing, patios, courtyards, swimming pool, carport, etc.

HIGHEST & BEST USE

    The highest and best use refers to the highest potential in terms of value that the property can achieve with due cognisance being taken of the local authority rights, restrictions and regulations, if applicable, as well as the general use of properties in the surrounding area.
    The highest best use of the subject property is that of a guest accommodation facility/restaurant, etc.

Capitalization

The Capitalization rate is best determined by referring to market transactions of comparable properties as it is based on information derived from market analysis. The Capitalization rate must take the prevailing interest rate into consideration. The higher the interest rate, the better the return an investor will require. Similar risk is another factor that will influence the Capitalization rate. The higher the risk factor, the better the return an investor will require. The risk inherent to income producing properties is the degree of certainty that the income stream will be realized despite the uncertainty of the future.

A Capitalization rate of 16% is considered to be the market norm for the type of space offered by the subject property, located in a low risk lending area with excellent exposure.
This in turn is equivalent to a price earning index of 6,25 which is in line with what the market should offer for a property of this nature under current market conditions.

Summary

In view of the following:

    Numerous international tourists visiting Luderitz
    Spacious layout of guest accommodation
    Owner managed
    Quality of improvements
    Operational going concern

I am of the opinion that there are not many indicators that would suggest that the standard lending policy for properties of this nature cannot be followed if the subject property is to be bonded.

Bay View Hotel Namibia For Sale

Bay View Hotel Namibia For Sale

Bay View Hotel Namibia For Sale

Bay View Hotel Namibia For Sale

Bay View Hotel Namibia For Sale

Bay View Hotel Namibia For Sale

Bay View Hotel Namibia For Sale

Bay View Hotel Namibia For Sale

Bay View Hotel Namibia For Sale

Bay View Hotel Namibia For Sale

Bay View Hotel Namibia For Sale

Bay View Hotel Namibia For Sale

Bay View Hotel Namibia For Sale

Bay View Hotel Namibia For Sale

Bay View Hotel Namibia For Sale

Bay View Hotel Namibia For Sale
 Photos: Bay View Hotel
YouTube channel: Exploring Namibia
Aerial photo/video service contact: info@traveltonamibia.com

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