HOSPITALITY firm Rainbow Tourism Group (RTG) says it is partnering with leading international hospitality brands as it expands into Cape Town, aiming to tap into global distribution systems, loyalty programmes and supply chains to strengthen its market position.
The Zimbabwe Stock Exchange-listed company has already committed US$5,6 million towards acquiring a seven-storey commercial property in South Africa, which will be converted into a branded hotel under the new arrangement.
RTG chief executive officer Tendai Madziwanyika told the Zimbabwe Independent that the group was in advanced talks with three international hospitality giants and expects to finalise an agreement soon.
“In Cape Town, our strategy for entering the market involves partnering with global brands, as we are not well-known outside of Zimbabwe,” he said.
“It would not be practical for us to explore the local landscape without established recognition. In this partnership, we will manage a hotel that we own, operating under a franchise model. We will utilise the offerings of the global brand to enhance our services and sales.
“This approach will lend us legitimacy and allow us to access a global supply chain and distribution system, including loyalty programmes and other resources. This is how we plan to differentiate ourselves in the market,” Madziwanyika said.
He said the group initially engaged six global players but had since narrowed down the list to three, all of which have shown strong interest in collaborating.
RTG finance director Napoleon Mtukwa said the company was expecting a return on investment of around 18% over six years.
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“In Cape Town, we have some quick figures, the total investment stands at about 18%, which is significant,” he said.
“This translates to a return over approximately six years. Cape Town is without a doubt a top market for us. Our average daily rates are generally strong, particularly in resort areas, although they tend to show better performance over a longer timeframe.
“Additionally, there is another compelling aspect, Cape Town is unique as an anti-resort city that caters to both leisure and business travellers, which adds to its appeal,” Mtukwa added.
The hotel is expected to open in 2027, with RTG working closely with its chosen brand partner to ensure a successful launch.
The move into South Africa is part of the group’s wider strategy to expand across sub-Saharan Africa by leveraging both its own brands and international franchises.
“We are definitely going to be expanding aggressively. We are building a pipeline. There are about 56 000 hotels on the Africancontinent, and guess how many there will be by 2030? About 124 000,” Madziwanyika said.
He added that despite challenges such as economic headwinds and geopolitical tensions, the company remains optimistic about its prospects.
“We are very optimistic about the future - the future of Zimbabwe, but also just the future of the company as we seek to grow into the region,” Madziwanyika.
“There is so much opportunity out there. We have no objections to de-dollarisation at all. In fact, having our own currency as a nation is beneficial. The main concern is how the Reserve Bank will manage this transition. As RTG, we fully support de-dollarisation. Currently, when we account for our dollars, we recognise them at an inferior official rate, while we purchase on the real market at a higher, more realistic rate. This difference ultimately results in losses for us.
“If the Reserve Bank can facilitate a unified exchange rate with our own currency, we would welcome that. Whether I hold dollars or local currency, my priority is to ensure that I don’t lose money in the process,” he added.
In its half-year 2025 results, RTG said the Cape Town property, currently a commercial asset, will undergo adaptive reuse and refurbishment to be transformed into a branded hotel under an international hospitality group. This will position the company to capture growth in South Africa’s vibrant tourism sector.
The acquisition marks RTG’s strategic entry into the South African market and represents a key milestone in executing its regional expansion strategy.
The group said the asset would provide a platform to attract international travellers, enhance its brand presence, and generate sustainable long-term returns in one of Africa’s most competitive and internationally recognised tourism hubs.
