RAINBOW Tourism Group (RTG) is trading at a marked premium to its underlying asset base after its market valuation surged by more than 80% in 2025, underscoring growing investor confidence in a refurbishment-led turnaround that is lifting earnings, market share and brand equity.
The hospitality group became the fifth counter in an elite cluster of just five companies valued at over US$100 million on the Zimbabwe Stock Exchange (ZSE) in November 2025, placing it firmly among the bourse’s heavyweight stocks.
At current levels, RTG is trading on a price-to-book multiple of about 1,47 times, signalling that the market is pricing in sustained earnings growth rather than merely asset backing.
In an interview with business digest, RTG chief executive officer Tendai Madziwanyika said the re-rating reflects consistent execution of a clearly defined strategy anchored on infrastructure renewal and operational discipline.
As part of this strategy, RTG embarked on a US$26 million capital investment programme implemented over the past five years.
“Refurbishments across the Rainbow Towers Hotel, the New Ambassador Hotel, A’Zambezi River Lodge, Victoria Falls Rainbow Hotel, and other city hotels have already delivered measurable improvements,” Madziwanyika said.
“We have seen higher occupancy in key markets; improved ADRs (average daily rates) as upgraded rooms attract higher-value guests; RevPAR (revenue per available room) growth driven by enhanced conferencing facilities and modernised rooms; guests are increasingly rewarding quality upgrades with stronger loyalty and spend.”
The operational gains are flowing through to the bottom line.
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“RTG’s 74% surge in EBITDA (earnings before interest, taxes, depreciation, and amortisation) for HY25 was driven by targeted operational innovations, notably a strengthened supply chain strategy that reduced costs, improved quality and enhanced reliability,” he said.
“Internal production of key vegetable lines, renegotiated supplier contracts, and broader procurement efficiencies significantly lowered input costs, while continuous-improvement initiatives streamlined processes, reduced wastage, and boosted productivity across the portfolio.”
Beyond its core hotel operations, RTG’s Gateway Stream platform is emerging as a meaningful diversification engine.
“Gateway Stream is forecasting to make a contribution of 8,4% to the group revenue forecast for 2025,” Madziwanyika said.
“Gateway Stream now has direct contracts with 489 hotels, 49 000 via third party integration with bed banks.”
Geographic expansion is also gaining momentum. The group acquired a Cape Town property last year and completed the purchase of the Montclair Hotel and Casino in Nyanga in November 2024, with further growth initiatives under consideration.
Madziwanyika said RTG is also seeing returns from investments in sustainability and human capital, areas increasingly scrutinised by institutional investors.
“Our sustainability efforts deliver both tangible and intangible returns. Solar investments reduce utility costs and emissions,” Madziwanyika said, adding that community and environmental projects strengthen its ESG (environmental, social and governance) profile and appeal to conscious investors.
On the people front, RTG’s employer-assisted housing scheme has improved staff retention, while training programmes and a cultural shift under its ‘The RTG Way’ service philosophy have raised service standards.
“Our training programmes, coupled with the cultural transformation under The RTG Way service delivery philosophy, have improved professionalism, service consistency and guest satisfaction scores. Investing in our people is investing in our competitiveness,” he said.
