HomeBusiness DigestLocked funds delay RTG refurbishment

Locked funds delay RTG refurbishment

HOTELIER Rainbow Tourism Group (RTG) expects to complete refurbishment of its Rainbow Towers by mid next year as progress has been hampered by the group’s failure to access nearly US$2 million of its funds locked up in closed Capital Bank, management has said.

Kudzai Kuwaza

Speaking to businessdigest on Tuesday, RTG chief executive Tendai Madziwanyika said RTG has US$1,9 million stuck in Capital Bank which was closed in June last year.

“It is just unfortunate that our money is stuck in Capital Bank,” Madziwanyika said.

“Had it not been for that we would had have completed the refurbishments but we are aiming to complete the exercise by 2016.”
The group has so far carried out refurbishments which include 230 rooms as well as the Jacaranda and committee meeting rooms at a cost of US$5,6 million from the US$7,5 million facility they had received from Afrieximbank, he said.

The refurbishment exercise, which began in 2012, will include the replacement of seats in the hotel’s main auditorium, the Harare International Conference Centre, and replacement of furniture such as curtains and tiles.

Madziwanyika said while they wait for the unlocking of their funds from Capital Bank they will continue refurbishments using their own resources.

RTG on Tuesday launched an online auction website that allows users to bid for accommodation, conferencing and banqueting packages.

Users are required to sign up for the service and once they have they will be able to bid by offering a particular price based on a set incremental amount that is higher than the existing bid or offer price.

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