RTG revamps Rainbow Hotel ahead of SADC meetings

TENDAIISHE NYAMUKUNDA AND TANATSWA KANDENGA

Rainbow Tourism Group (RTG), a publicly traded hospitality firm, is revamping flagship assets, the Rainbow Towers Hotel and the Harare International Conference Centre (HICC) ahead of SADC meetings.

The 4 500-seater HICC at the Rainbow Towers Hotel will host the SADC Industrialisation week  from July 28 to August 2, 2024. At least  300 guests and 150 companies are expected to be in the country during the investment conference period.

It will take place ahead of the Council of Ministers meetings and the SADC summit, which will take place from August 9 to 18, 2024 at the new Parliament Building in Mt Hampden.

The Government of Zimbabwe, which owns the majority stake in RTG through its pay-as-you-go pension scheme, the National Social Security Authority and the Ministry of Tourism and Hospitality Industry, has selected the hotel to host the SADC meetings.

Tendai Madziwanyika, the group CEO of RTG, disclosed the refashioning of the Rainbow Towers Hotel and the HICC. He stated that the business was re-fashioning 183 guest rooms and had installed  two brand-new, state-of-the-art elevators at the Rainbow Towers Hotel in Harare.

Additionally, he stated that the Presidential suite at the hotel was completed in the fourth quarter of last year and at the moment work is in progress to complete the remaining 72 rooms that will be converted to six diplomatic suites and 48 standard rooms.

Speaking at the company’s annual general meeting held in the capital this week, Madziwanyika said the re-fashioning of all rooms at the Rainbow Towers Hotel and the HICC, which will host delegates attending the SADC Industrialisation conference and the summit, will be complete by mid July.

Rainbow Towers Hotel is redesigning several of its rooms to make place for Heads of State who will be staying there for the conference.

“We will do it in time for the SADC Industrialisation Conference. We are doing something incredible. For the first time since it was built 40 years ago, the whole of the HICC will have brand new carpets and brand new chairs. Everything will be complete by mid-July,” Madziwanyika said.

Despite difficult economic conditions, Madziwanyika stated in a trading update for the first five months of this year that RTG has sustained positive performance.

Revenue for the group grew by 75% in the period under review while occupancy rates across the hotel portfolio averaged 60%, outperforming industry benchmarks.

Revenue Per Available Room (RevPAR) grew by 128% to US$58.

Madziwanyika said the strong performance reflects the group’s resilience and ability to navigate challenging macroeconomic conditions.

Despite global economic headwinds, including rising inflation, supply chain disruptions, and geopolitical tensions, RTG recorded strong operational and financial performance across its portfolio of hotels, resorts, and tourism experiences.

“We are pleased to report that RTG has sustained its positive trajectory, delivering solid results in the midst of a turbulent economic landscape,” Madziwanyika said.

He added: “Our ability to adapt quickly, optimize efficiency, and focus on delivering exceptional customer experiences has been key to our success.”

RTG paid the final dividend for the full year 2023, totaling US$260,000 and ZIG 4.1m, which is equivalent to US$250,000.

Since 2018, RTG has declared cumulative dividends of US$6m, in addition to capital expenditures of US$21m over the same period.

Madziwanyika sees the future with optimism.

“Looking ahead, we remain cautiously optimistic about the future,” Madziwanyika said.

He added: “While macroeconomic challenges persist, we are confident in our ability to navigate these uncertainties and continue delivering value for our shareholders, partners, and guests.”

Madziwanyika added that RTG has started implementing a clean energy policy with the construction of a solar facility in Kadoma and that the introduction of the ZiG, a new currency, is anticipated to stabilize exchange rates.

The group’s market share during the period under review stood at 30%, from 28% in the same period last year.

RTG’s share of voice has gone up from 33% to 39%. Share of voice is that measure that says out of the articles that are generated on tourism, what is our share —how much of the articles and the statements and everything being generated on tourism in this country is about RTG.

“That means 39% is RTG-related and that’s incredible. Out of all the players in tourism, close to half of the messages are about this company.”

RTG’s tone of voice, during the period under review, stood at 100%.

“Tone of voice is a measure to say out of the 39% that we are saying is share voice, how much of that is positive because you can have a large share of voice but with some of the things negative, and that is not good for branding.

“Our tone of voice is now 100%. In other words, all the articles in this period about RTG were positive and that is how we drive the brand,” Madziwanyika added.