Guest house Garoza is located 100m from the sea and 70km from Riga. There can be accommodated up to 60 guests and the guest house is suitable for celebrations up to 70 guests. During low season small constructions and refurbishments are made to prepare for the next season.
We evaluate the Company with a grade A – company has stable financials and increasing reputation and recognition; however, the Company is operating in volatile industry (hospitality and tourism). Company has enthusiastic and determined owners, who co-finance Guest house development. We have successfully cooperated with Guest house Garoza owners in the past and on September 2022 the Company repaid it previous loan and interest to Boldyield. We believe that the Company will be able to repay principal and interest according to the schedule.
- The Company is established in 05.12.2008,
- Owners of the Company have more than 20 years of experience in real estate and hospitality,
- In 2020 Guest house Garoza was fully redisigned and refurbished. Now it can accomodate more guests.
- In 2021 the ownersbuilt a sauna house,
- Price for a room range from EUR 130 to EUR 270 for a double room during the high season.
- Guest house Garoza is only place in a neighbourhood that offer rooms for accommodation,
- There are available rooms with double bed, luxury room, rooms with a view to the garden and sea, room with a terrace, family room and double room. It has a sauna house available for accommodation as well.
- Guest house Garoza is located 5km from highway "Via Baltica" (route E67), and 100m from sea.
- Can host up to 80 people during summer
- Cosy atmosphere and friendly service, unique design
- Outdoor kitchen, campfire place, hot tub, children playground
- Variety of rooms to choose
- Beautiful coast of the sea and surrounding environment
- Organising events to attract guests to the Guest house
- Any government restrictions that would affect tourism and accommodation
Company demonstrates a stable turnover and in period 2014 - 2020 it was EUR 240th on average. For the observed period Gross margin was 35% and Net margin 18% on average. In 2021 turnover decreased due to closure during winter as it became unprofitable. According to the operational data provided the Company’s turnover in 2022 exceeded EUR 200th.
Travel and tourism industry direct contribution to the World economy is around 10%. Until tourism industry was hit by Covid-19 crisis (restrictions to travel in order to limit Covid-19 spread), the industry grew for 10 years. In Latvia tourism industry does not have as large contribution to the economy as in countries such as Spain, Italy, France or UK, however, since 2009 when travel and tourism industry experienced dip due to Financial crisis, tourism in Latvia has been growing more than in the World on average. The number of foreigner travellers to Latvia are increasing and Latvia is becoming more attractive for tourists.
The accommodation business depend on domestic and international travel that last more than 1 day. Accommodation services are mostly used by foreign and especially hotels. But for guest houses there is greater demand among locals. As in 2020 international tourism stopped, there was almost no demand left for hotels and they closed. Despite restrictions only slight decline was for numbers of locals hosted in hotels and guest houses.
Guest housing is seasonal. During winter months the demand for accommodation decreases dramatically, approximately ten times. The season peaks on June and July, for example in June 2022 in total 75 thousand guests were hosted in Guest houses which was historical maximum. In comparison in January 2022 only 9.6 thousand guests were hosted.
Based on the statistics foreign travellers are vising Latvia more often, but activity of Latvian travellers is declining, especially for those who choose travel across Latvia. In 2019 major part of foreign travellers consisted of Lithuanians and Estonians (34,5 and 18% respectively). Increase of guests (2010 - 2019) served in Latvian hotels and other tourists accommodation represents overall development of Latvian tourism industry.
Now there is no restrictions to travel and tourism industry is almost at pre-covid levels. But due to geopolitical situation and forecasted energy crisis in Europe, people are more conservative about their spending habits and rather are saving money than spending it to travel.Nevertheless, in summer 2023 the tourism should continue to increase and travel industry (including accommodation services) to grow.