RTG to franchise Cape Town hotel under global brand

CLOUDINE MATOLA

Publicly traded hospitality group,Rainbow Tourism Group (RTG), plans to operate its newly acquired Cape Town property under a global hotel brand as it seeks to expand its international reach and tap into established loyalty programmes, Business Times can report.

The group intends to franchise the hotel under a major international brand while retaining responsibility for its day-to-day operations, chief executive Tendai Madziwanyika said at RTG’s annual general meeting on Tuesday this week.

Madziwanyika declined to disclose the identity of the prospective partner, but said the brand was highly regarded and operated in the four- and five-star segments.

“We will internationally brand it because beyond Zimbabwe, no one really knows RTG,” Madziwanyika said.

“We are now partnering with an international brand. I’m not at liberty at the moment to tell you which one, but it’s a very strong, highly respected brand, and participates in the four- to five-star categories. We will be putting their badge, but we will manage it. So we will be running it on a franchise basis.”

RTG plans to transform the seven-storey building into a 126-room hotel by adding three floors, with the development also incorporating 10 apartments.

“The seven-storey building will be converted by adding another three floors and what we are aiming to do is to convert it into a 126-room hotel with 10 apartments,” Madziwanyika said.

The partnership forms part of RTG’s broader strategy to expand beyond Zimbabwe by combining its local operating expertise with the marketing power, reservation systems and loyalty programmes of global hotel brands.

Madziwanyika said international hotel operators were keen to expand across Africa but were generally reluctant to assume property-related risks.

“What international brands have are powerful brands with huge loyalty programmes and great systems. They want Africa, but everybody is scared of Africa. But we love Africa, and we understand Africa, and we know how to make money out of Africa,” he said.

He said RTG would assume the property risk while the international partner would provide the brand and operating systems, creating a model that could be replicated across other African markets.

“They do not really generally want to take risks. The biggest risk is obviously property. They will not want to invest in a building, buy a building and build anything, or even want a lease. That’s where we come in,” Madziwanyika said.

“If we do our day-to-day work and realise we can make money here, we then go in, run it in partnership with an owner of that property, and take their brands. Everybody makes money. That is going to be our expansion model beyond the Zimbabwe borders.”

RTG is targeting April 1, 2027 for the groundbreaking of the Cape Town project and has already deployed a team of about 20 experts to work on the property.

“We have got a huge team that is working out there, close to 20 experts. We were there last week just catching up with them. It is looking exciting, and we are aiming to groundbreak on April 1, 2027. You will have a functional hotel in Cape Town,” Madziwanyika said.

The Cape Town investment is part of a broader capital expansion programme by RTG.

Madziwanyika said the group had invested in acquisitions and refurbishment of existing properties, including the purchase of Montclair Resort, the Cape Town property on Buitengracht Street and Batoka, a Victoria Falls-based tour operating business acquired to support RTG’s investment in Heritage Expeditions Africa.