The Villa Guest Lodge in Nuku'alofa,Tonga,Business is for sale

The Villa Guest Lodge in Nuku'alofa, Tonga, Business is for sale

The Villa Guest Lodge in Nuku’alofa on the main island of Tongatapu in Tonga, is an excellent lifestyle opportunity for new owners to enjoy a successful business in an emerging tourist destination.

The climate is tropical and it is located 2 hours and forty minutes by aircraft from New Zealand. There is a good sized expat community, mostly involved in the tourism industry, and the impending restructure of the government including the holding of the first democratic elections in November and the increased focus on tourism as an economic driver augers well for the future.

The Lodge includes five guest rooms each with an ensuite, and facilities international travellers expect such as a desk, air conditioning, halogen lighting and wireless internet access. It is a short walk to the CBD, wharves and cafes and restaurants, and is located across the road from the sea.

He Lodge offers a range of food and beverage options which are easily run by the owners. The current owners did not have a hospitality background when they purchased the business in 2003. Three of the previous owners have been from the South Island of New Zealand.

The vendors have an arrangement with a retired couple who periodically take over the running of the Villa to enable them to enjoy an extended holiday away from the business.

This is an rare opportunity to enjoy a quality business in a tropical climate.
 
Location and Surrounds

The Villa Guest Lodge is conveniently situated on the waterfront esplanade of Vuna Road to the East and is an easy 10 minute walk to the Central Business District of Nukuálofa, Tonga’s Capital City.  It is also close to the harbour and wharf area.

This makes the Villa popular with both business travellers and tourists being a short walk to the main bars, cafes and port facilities.

The Villa is located 30 minutes from the airport and transfers can be arranged.
Tonga is located 2 hours 40 minutes by aircraft North from Auckland and is one of the closest Pacific Islands to New Zealand. Air New Zealand, Pacific Blue and Air Pacific all have scheduled flights ex New Zealand and Australia

The Villa Guest Lodge Business
 

The Accommodation

The accommodation includes five large guest rooms with ensuite facilities and amenities, and a large owner’s room within the complex.

The current owners have focused on building the business and professional market and this represents around 80% of the current business mix. Accordingly the rooms all have good work desks, halogen lighting, air conditioning direct international dial telephones and wireless internet access.

Much of the business market is built on government work as Tonga is the recipient of substantial overseas aid and much of this is in the provision of consultants. As Nukuálofa is the Capital, all Government Departments and NGO’s are based there. The average length of stay is approximately 10 – 14 days however some stay for a number of months.

The vendors generally impose a three night minimum stay for the tourist market.
 

Food and Beverage

Currently the restaurant/bar is only open one night a week, Friday. The kitchen is open from 6pm to 8.30pm with the bar remaining open until around midnight. The license allows the cafe/bar to operate 7 days a week.

The formula is extremely simple - the best fish and chips in the country with fresh snapper or mahimahi and usually one other option - ie pasta or chicken and a couple of dessert options.  It's very casual and very popular, average numbers around 40 and up to 55 with average spend around $48 per head.
 
There is now a great selection of imported beers available in the Kingdom but we do import our own wines from NZ which are shipped up 3 or 4 times a year, this isn't totally necessary either but it does give us a decided advantage over other bars in that we can offer superb NZ and Italian wines at a reasonable price.
   
General

It is an excellent cash flow business making forecasting relatively easy. Most accounts are settled by credit card however there is also some cash payments. There are very few charge backs and have no bad debts or collection issues.

The premises hold both accommodation and restaurant/bar licenses.

A consumption tax was introduced in 2005 (called CT) which is currently 15% and The Villas is registered as a CT business.
 

Management and Staff

The business is run by the vendors with the assistance of a part time local who helps with cleaning.
   
The Lease

Only a Tongan male can own land in Tonga, so most foreign owned businesses in Tonga operate on a lease. There is no requirement for any local partnership and the business is currently run as a sole proprietorship.

The current tenancy agreement now expires 30 November 2034

The Opportunities

Increasing visitor numbers are a likelihood as more foreign assistance in the form of advisors and consultants will increase, in particular from New Zealand and Australia and the Villa is well positioned to capitalise on this increase in accommodation requirements.

The New Zealand governments ‘hand up rather than hand out’ policy has already seen an increase in international advisors and consultants being employed to assist in the political and economic restructure.
 

Tripadvisor assessment

The business rates number 1 of 6 lodge accommodation providers in Nuku'alofa on Tripadvisor and there is a shortage of quality accommodation that is acceptable to international travellers.
 

Brokers Comments

The Villa is a great opportunity for those seeking a life style in the Islands. With the opportunity of living in Tonga and to run a small business that does well now and has great potential for further development, this business may be the right one for you.
 

Website : http://www.tongavilla.com/
 
Ross M. Larsen C.H.A.

Ross Larsen, the Tourism & Hospitality Business Broker that is acting as the agent for the owner of this property is happy to discuss this property's details with you at any time - refer to the contact details on this page.

Tourism in Tonga

In addition to The Villa's own website the Guest Lodge is featured on these websites:

*   http://www.tongaholiday.com
*   www.tripadvisor.com
*   http://travel.mapsofworld.com
*  www.thekingdomoftonga.com

Tonga is starting to take Tourism seriously as it hasn’t enjoyed the profile and status that other Pacific nations have. The recent appointment of a new CEO of the Tonga Tourism Bureau, and the appointment of a special advisor to the Ministry of Tourism to focus on Tourism development illustrates the urgency and importance now being placed on the sector.

There is significant air capacity and a shortage of quality accommodation yet there are many enticing experiences to be had including:
 
*  Whale swimming and watching
*  Diving and Snorkelling
*  Yachting
*  Kayaking and outrigger canoes
*  Fishing
*  Surfing
*  Trekking and camping
*  Kart safaris