Designing, building and selling a hotel

BusinessesForSale: What inspired you to create your own hotel?

Guido Schoeldgen: Being a photographer and designer means you have to be creative, so I always have in mind to create something extraordinary and bold. I spent many years designing and doing art for hotels like the EAST in Hamburg.

My base is in Cape Town and my gallery owners are come here to see my work and proposals for new design ideas. When Cape Town is cold or too busy I escape to my hotel, Days At Sea, which is a hotel I designed and built myself. My manager runs the hotel and I just help out with some marketing ideas. It is an artist’s retreat on South Africa’s south coast with warm oceans, monkeys and the everlasting sound of waves.

When Cape Town is cold or too busy I escape to my hotel, Days At Sea, which is a hotel I designed and built myself

BFS: It sounds wonderful, how difficult was it to finance this business venture?

GS: Financing is a problem at this point of financial developments and crisis but with a proper business plan you will get what you want.

BFS: When considering location, what factors are important to take into account when setting up a hotel?

GS: The location was the only important issue to me. Days At Sea is really one the most beautiful spots you can imagine, situated on an unspoiled endless beach.

I designed the hotel with ideas from all over the world, and in after the first year it was rated as ‘one of the 100 most beautiful hideaway hotels of the world’.

BFS: And I understand it’s a five star hotel, how do you qualify to be a five star establishment?

GS: In South Africa they are starting to be fuzzy about being a five star hotel and it comes close to European standards. They take stars away from establishments who do not comply with the computerized list of 1001 points.

BFS: What are the legal restrictions to setting up a hotel business?

GS: Legal restrictions depend on the building guidelines and the zoning, it took a long time to be where we are now. I believe for entrepreneurs wanting to get into the hotel business, if you find a hotel for sale that you like - buy it! Don’t go through planning and building, it takes a lot of energy.

BFS: What’s the best way to market a hotel business? How important is having an online presence?

GS: Online presence is the most important marketing tool nowadays, apart from my art-related clientele, 70 % of our guests are via the website and our online presence.

BFS: So why are you selling the business and how hard is it to find a serious buyer?

GS: Days At Sea has been a good experience and it has become a popular spot, but personally I feel I have to move on. There are new project waiting for me in Mallorca, Hamburg and the Seychelles. Also, I’m not getting younger and unfortunately, due to some health problems, I feel I need to calm down a bit and I intend to spend more time with my wife Annette.

In regards to finding a buyer, everybody that comes to view Days At Sea falls in love with the hotel, but we need someone who understands what we are doing and has the same vision for the hotel.

Read about Activity in the South African hotel sector