Opportunity to Invest in a High-Growth Boutique Hospitality Asset
Converting a Luxury Guesthouse & Licensed Venue into a 30-Room Boutique Hotel.
This off-market opportunity is currently under agreement, with initial escrow deposit and due diligence underway. Sponsor controls the buyer position, and investor participation is structured via our SA entity leading the transaction.
Presented by:
Charl Hattingh (Sponsor)
Opportunity to Invest in a High-Growth Boutique Hospitality Asset
Converting a Luxury Guesthouse & Licensed Venue into a 30-Room Boutique Hotel
All capital participation is facilitated through our lead entity, which controls the buyer position and execution rights. We welcome aligned investors into this structure — no outside offers or repositioning can occur without our control.
Transforming a R60M Coastal Hospitality Asset into a 10X Revenue Boutique Hotel
Prime Garden Route location
10-room luxury guesthouse (already profitable)
Fully licensed venue, restaurant/bar
Approved plans to expand to 30-room Boutique Hotel
Revenue upside potential: 10X
The Deal is in Place – Here’s How It’s Structured
Purchase Price: R59,999,999
Bank Loan (Pending): R41,999,999
Seller-Financed Equity (30%): R18,000,000
Investor Capital Needed: R7,500,000
R6M for Boutique Hotel conversion
R1.5M for escrow/legal compliance
Bonus:
Seller committed to fast closing
Conversion plan already zoned & municipally supported
Flexible Capital Participation Options
Option 1 – Fixed Income
R7.5M Loan Note
Start as loan with 12% annual interest only
Term: 36 months
Secured via junior lien, personal guarantee
Repaid via refi or equity exit
Purpose:
R6M for Boutique Hotel conversion
R1.5M for escrow/legal compliance
Option 2 – Equity Upside
R12M Capital Injection
12% Ownership in SA Entity
Target: 2X return on exit
Share in uplift from guesthouse to hotel revenue
Purpose
Boutique Hotel UpgradesR6M–R7M
Working Capital Cushion (3–6 mo)R1.5M–R2M
for escrow/legal compliance R1M
Contingency ReserveR1M–R2M
Capital Stack Position (Investor Note)
Your investment is structured as a performance-aligned capital bridge, sitting behind senior bank debt and seller-held financing.
Senior Position: Traditional bank loan (secured by property)
Second Position: Seller-financed equity (aligned seller, no hard claim)
Third Position (You): Private capital for value-add & growth phase
✅ Returns aligned with execution
✅ Secured through lien, guarantee, or profit-share
✅ Exit via refinance or property sale
✅ Full transparency & legal protection
Why This Is a Smart & Secured Opportunity
Property cashflows from Day 1
Bank financing already in motion
Seller contributes 30% equity = alignment
Local legal team + escrow ensures safe setup
Boutique Hotel = major valuation uplift
You back proven operators with skin in the game
Clear Exit & Growth Timeline
Year 1:
Acquisition & transfer
Boutique Hotel upgrades
Relaunch with 20+ rooms operational
Year 2–3:
Full 30-room stabilization
Refinance to repay bank & investor
Or: Strategic sale / hotel group interest
Charl Hattingh
Born and raised in SA, combines international structuring
with deep local insight - hospitality & real estate investor in
New Zealand, Australia and in U.S. - with active SA expansion.
Founder, Investor Liaison & Strategy Lead
Meet Your Team
We’ve identified the following key roles critical to the success of this conversion and repositioning. These will be filled by a combination of direct hires and strategic partnerships upon closing:
Founder & Principal: Charl Hattingh, driving vision and execution
Hospitality Lead: To be appointed — candidates with boutique hotel experience engaged
Financial Oversight: Shortlisting 3 reputable SA-based accounting partners
Construction PM: Industry-vetted local operator pending terms
Compliance & Legal: Consultation secured with hospitality-focused firm
Brand & Revenue Lead: In-house or agency role depending on phase
To ensure a seamless transition and sustained performance, we will retain select key staff from the current Villa Castollini team.
These team members bring valuable on-the-ground experience, supplier relationships, and hospitality know-how — providing immediate operational continuity.
Oversight and strategic direction will be led by Charl Hattingh and our leadership team, who are responsible for executing the repositioning, capital upgrades, and financial optimization.
Let’s Talk
Join Us In This Ground-Floor Growth Opportunity
Let’s schedule a 15-minute call to walk through the structure and alignment.
Only a small number of investors will participate in this phase.
Charl Hattingh
[email protected]
+27 072 681 1150
www.hubhubgo.com
FAQs
Your Questions Answered: Quick, Clear Commercial Real Estate Guidance.
What if something goes wrong? How do I know my money is safe and not misused?
All funds are held in a secure third-party escrow trust account — not personal or operational accounts. Capital is only released upon the satisfaction of pre-agreed milestones (such as closing, construction permits, or transfer).
Additionally, investor funds are protected through a legal agreement, including a lien on the property (if debt), shareholder agreement (if equity), and personal guarantee if required. We are aligned — you don’t get diluted, and your capital is never used loosely.
How do I get paid, and when can I expect my return? Is there monthly cash flow? Is this all back-ended? What’s the timeline?
There are two options:
Fixed Income: 12% annual interest paid monthly or quarterly (loan model)
Equity Upside: Target 2X return within 24–36 months upon refinance or exit
In both cases, the investment is designed to deliver either consistent income or equity uplift, with clearly defined exit strategies: refinance, sale, or recapitalization — and timelines are based on milestone triggers, not endless projections.
What if South Africa's political climate changes or expropriation without compensation happens? Isn’t the government unstable? What if they take private property?
South Africa has strong constitutional protection for private property ownership and foreign investment, especially for income-producing commercial assets.
The expropriation law is targeted at unused or fallow agricultural land, not private hospitality assets that generate employment, taxes, and community value.
We are also structuring the deal through a South African private entity, and property rights are further reinforced by being secured through the Land Registry and regulated title deed transfer system — backed by lawyers, notaries, and title insurance.
Lastly, this asset is in a premium tourism location, not rural farmland, and has existing business licenses and infrastructure.
What’s your skin in the game? Why should I trust you as the operator? Are you just brokering this, or are you really in with me?
I’m not just finding deals — I’m leading this venture from end to end.
I’ve already spent personal capital on due diligence, legal, and team-building.
My team and I will operate and manage the asset day-to-day.
I’ve structured this deal so that I only win if the investor wins.
On equity, I take a founder share only after your capital is returned. On debt, I offer personal guarantees and transparency via escrow controls. I’ve also aligned myself with seasoned partners in hospitality, construction, and finance locally.
What happens if construction or conversion goes over budget or takes longer? You said R6M. What if it becomes R9M and delays the exit?
We’ve budgeted with a built-in contingency reserve, and our quote is backed by experienced builders and project managers with a proven record in boutique hotel upgrades.
Timeline projections are based on current permit status and municipal alignment. The deal also includes a phase-based release of capital, so we don’t move to the next stage unless milestones are hit.
And remember: even in a delay scenario, the base business (guesthouse + venue + bar) is already cash-flowing and can support debt servicing, giving breathing room while we complete the value-add.
