Hotel for Sale in Dar es SalaamPopular Premium
A 130+ room hotel, a unique and valuable proposition for a business and investment opportunity in the center of Dar es Salaam. The hotel is situated between Central Business District and Commercial Area of Kariakoo of the Commercial City of Tanzania. It is located for the convenience that the center offers to most business travelers, as well as the set up of the building, that facilitates the corporate client. It is therefore a great opportunity for a hotel management team or investors, who want to appeal to the Business and Corporate level of customers.
LOCATION: Opposite the Mnazi Moja Park, this is adjacent to Bibititi Mohamed and Uhuru Street.
Competition / Market: The competition in this segment is not very strong as this Hotel is located at the center of Dar es Salaam, between Kariakoo, the busiest commercial area in Tanzania, and City Center.
Property information: Real Estate: Real Property and land Included
Premises details: The building incorporates two sections – a high seven-floor and a low Ground floor used as Cinema hall section adjacent. The Cinema hall is not included in this sale, but it has its own clean title deed owned by another family of four shareholders and can be sold for USD 1.5 Million (size: 1500 sqM). In addition, there is ample space for parking lots and outside sitting area for guest. 1325 sq M; 30 parking spaces; conference room 40 pax restraint 60 pax; courtyard cafe and six shops on the ground floor.
Community Description Park and commuter bus station; walking distance to colleges, Government off ices and mall.
Price: USD 3 Million net.
The below is some useful info as per owner’s narration:
1. How much has been invested in the property over the last five years? This Hotel was family owned and due to death of the sole owner, the property was passed by the will to his children/administrator, and unfortunately in the last 7 years nothing was done to invest on the property.
2. Previous 3 years P & L for the business: Not available; the property was managed on hand to mouth basis; therefore the Hotel was running on loses and accounts was not properly accounted for.
3. Survey or structural/property report : No survey or valuation of the property was done by the original owner and by the children.
4. Does a current fire safety certificate exist? No fire safety certificate exist but few fire extinguishers exist on each floor, however their working condition is not verified.
5. Breakdown of utility capacities and current utility costs i.e water, power and waste : Power and water are available and connected. There is a water borehole pump and water from public water supply. Waste is connected to city sewage system.
When the Hotel was busy 6 years back, the following approximate monthly costs were incurred:
Â· Power Tshs 1,000,000.00
Â· Water Tshs 300,000.00
Â· Waste- sewage Tshs 500,000.00
Please note: during the last 6 years electricty and water cost have increased and the figure provided is an approximation only.
6. What are the transfer and government tax obligations? The buyer would be responsible for all transfer and tax obligation.
7. Any other transaction costs: The owner has dismissed all employees and all their terminal benefits paid, All NSSF contributions were also remmited. The owner off icially closed the tax files due to closure of business. No bank liability against the property. All property and land taxes are paid.
8. Is the property 100% owned by one entity? The property is family-owned with a single clean title deed with no legal encumbrance.
The hotel was built 30 years ago and needs renovation to restore to its previous glory.
Note: Foreigners (non-Tanzanians) cannot own properties in Tanzania unless invested through the Tanzania Investment Centre (www.tic.go.tz) or by establishing a local company.
Payment terms is cash and not through bank loans due to the inconvenient and lengthy bank procedures.