Guest house Garoza is located 100m from Baltic sea and 70km from Riga. It has 11 rooms with bathrooms for 23 people with possibility to create extra 15 beds. There is possibility to organise celebrations for up to 50 guests. Guest house was refurbished during last winter and was open for guests beginning this summer. Now, during low season, a couple finishing improvements are required to be open for guests in next spring with even greater accommodation opportunities
We evaluate the Company with a grade B – company have stable financials; however, profit ratios can be improved and the Company is operating in volatile industry. Company has enthusiastic and determined owners, who during last winter invested to refurbish Guest house. We believe that the Company would 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,
- During winter 2020 the Guest house was refurbished and require finishing updates during this winter to accommodate even more guests,
- Price for a room range from EUR 60 to EUR 130 for a double room,
- Guest house Garoza is only place in a neighbourhood that offer a room for accommodation for affordable price,
- 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,
- Guest house Garoza is located 5km from highway "Via Baltica" (route E67), and 100m from sea.
- Possibility to create celebrations for up to 50 people
- Cosy atmosphere and friendly service, unique design
- Outdoor kitchen, campfire place, hot tub, children playground
- Variety of rooms to choose
- Located quite far from highway and there are no signs to follow from it to reach Guest house
- Beautiful coast of the sea and surrounding environment
- Organising events to attract guests to the Guest house
- Further government restrictions due to coronavirus that would affect tourism and accommodation in next spring.
Company had a stable turnover during the last years and was EUR 240th on average. For the observed period Gross margin was 35% and Net margin 18% on average. Due to recent developments of the guest house and operational data provided the Company’s turnover in 2021 will exceeded EUR 250th.
Travel and tourism industry direct contribution to world economy is around 10%. Until tourism industry was hit by Covid-19 crisis, it had been growing for 10 years. In Latvia tourism industry does not have as large contribution to 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 World on average.
The guest housing business depend on domestic and international travel that last more than 1 day. In 2020 tourism industry took a hit due to restrictions with an aim to limit Covid-19 spread. However despite restrictions Latvian guests served in hotels and guest houses did not drop dramatically.
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.
There is a hope that until summer the spread of coronavirus will plummet and thus restrictions will be lifted allowing travel and tourism industry to reach pre-covid levels. Guest house Garoza should continue to attract local and international guests (especially from Estonia and Lithuania).