RTG profits soar 18%
ROBIN PHIRI
Rainbow Tourism Group (RTG), a publicly traded hospitality giant, posted an 18% rise in profit after tax to US$5.4m for the year to December 31, 2024, driven by surging guest demand and foreign currency revenues.
The increase follows a 2023 profit of US$4.6m.
RTG board chairperson Douglas Hoto said: “A key highlight was the 15% growth in foreign currency revenues, rising from US$16.4m to US$19m, accentuating the group’s ability to attract international business.” Total revenue reached US$44.4m, up 2% from US$43.6m the previous year, with occupancy growing to 54%, reflecting a strong rebound across both accommodation and conferencing segments.
Hoto added:“Notably, resort hotels experienced a robust rebound in 2024, surpassing pre–COVID-19 occupancy levels, while city hotels continued to strengthen despite the headwinds posed by various government policy interventions throughout the year.”
Earnings before interest, tax, depreciation, and amortisation (EBITDA) surged 52% to US$9.7m, supported by cost-saving measures and higher revenues. The group declared a US$2.5m dividend, with US$500 000 in foreign currency and US$1m in local currency.
RTG completed the US$5m acquisition of Montclair Casino and Hotel, which CEO Tendai Madziwanyika described as a “fantastical acquisition,” noting that July and August alone saw over 100% revenue growth for the property.
Hoto said: “By integrating Montclair Hotel into our portfolio, we are well-positioned to capitalize on the increasing demand for quality hospitality experiences, reinforcing our commitment to sustainable expansion and long-term value creation.”
The acquisition has doubled RTG’s revenue stream, with foreign currency revenues outperforming expectations with 23% growth, translating to US$9.8 million of the overall 15% revenue increase. Expansion into South Africa, including a branch in Cape Town, forms part of a shareholder value strategy under tight monetary policies.
Madziwanyika explained,:“And one of the ways that we are managing the exchange rate matter is also to expand… whether exchange rate goes down in South Africa, it probably will be stable or go better in Zimbabwe. It’s actually a way of growing shareholder value.”
Despite global economic headwinds and geopolitical risks, RTG remains confident in the hospitality sector’s resilience and long-term growth prospects.
