Zimbabwe’s biggest hospitality chain — Rainbow Tourism Group (RTG) — said on Thursday growth during the year-ended December 31, 2025 was robust, with revenue rising 13% to US$50,3 million.
The surge was driven by innovative strategies and sustained strength of the Zimbabwe Stock Exchange-listed group’s diversified portfolio.
Board chairperson Douglas Hoto said: “The group delivered a robust performance during the year under review, posting double digit revenue growth driven by innovation and the continued strength of its diversified hospitality portfolio.”
“This achievement was recorded despite persistent market liquidity challenges and a reduction in non-governmental organisation-related business following the withdrawal of donor funding by key international partners. Revenue increased by 13% to US$50,3 million, supported by a significant 28% growth in foreign currency earnings.”
Hoto said that the group’s total assets increased by 28% to US$82,7 million, compared to US$64,5 million in the prior year.
“This growth was driven primarily by the strategic acquisition of assets, namely Montclair Hotel and Casino in Nyanga, MSK House in Cape Town, South Africa, and Batoka Safaris, a destination management entity based in Victoria Falls,” he said.
The group recorded an occupancy rate of 57% during the period under review, a 6% increase from 54% recorded the prior year.
Hoto also noted that foreign currency revenue increased by 28% to US$24,1 million from US$18,9 million recorded in 2024, supported by continued growth in international tourist arrivals in Victoria Falls and an increase in regional conferences.
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The recently incorporated Montclair Resort and Conference Hotel and Batoka Safaris contributed 8% of the total group revenues.
“The group achieved a strong uplift in profitability margins during the year, supported by disciplined cost‑management and enhanced operational efficiencies,” Hoto said.
“Gross profit margin rose to 74%, a clear testament to the success of procurement optimisation initiatives and ongoing efficiency programmes.”
During the year, the group invested US$15,5 million in capital expenditure, with US$13,4 million directed towards the acquisition of new business entities and the remainder allocated to the refurbishment of key properties. He also noted that the group’s gross profit margin rose to 74% from 70% in the prior year, driven by stringent cost controls and efficiency gains.
“The group achieved a strong uplift in profitability margins during the year, supported by disciplined cost management and enhanced operational efficiencies,” he said.
RTG chief executive Tendai Madziwanyika said that these results illustrate a robust commercial strategy that enabled RTG to dominate volume and market share while maintaining a strong revenue base.
He said the group’s superior performance reinforces its position as Zimbabwe’s leading hospitality operator and highlights the importance of continued investment in brand strength, distribution effectiveness and customer engagement to sustain momentum in a competitive landscape.
“The growth reflects the group’s deliberate, diversified strategy and its ability to respond quickly to changing market dynamics,” he said.
“This growth reflects our deliberate approach to managing the business, combining innovation with a focus on maximising the potential of our diversified portfolio. Our resilience stems from not relying on a single revenue stream and our ability to continuously innovate and adapt quickly to market dynamics,” he added.
“We have been very deliberate about managing our costs while also improving how we operate, and that is starting to show in our margins. Simple innovations, such as the introduction of the RTG Agro project where the group now grows fast moving produce items such green vegetables, cabbage, lettuce, broccoli, onions helping us reduce costs significantly while also ensuring fresh and quality food experience for our guests.”
Madziwanyika said the increase in foreign currency earnings “is driven by stronger international travel and growing conferencing activity, particularly in Victoria Falls”. — Staff Writer.
