• RTG’s implemented solar investment at Kadoma Hotel now meeting 40% of the hotel's energy requirements
  • The 300KVa solar plant, comprising 650 solar panels, has surpassed both the national grid and the diesel-powered generator as the primary power source for Kadoma Hotel
  • RTG has crossed the 200 billion dollar mark in revenues

Harare- Kadoma Hotel, owned by Rainbow Tourism Group (RTG), has successfully harnessed the power of solar energy through its green investment. The installation of a 300KVa solar plant has enabled the hotel to meet 40% of its energy requirements, as confirmed in RTG's full-year financial report for 2023.

The solar plant has proven to be a cost-effective alternative to lighting generators and hydroelectric power from the national grid, marking a significant milestone in RTG's commitment to sustainable practices. The success of this initiative sets a commendable example for RTG's flagship properties.

Douglas Hoto, the chairperson of RTG, expressed his satisfaction, stating, "The 300kva solar plant at Kadoma Hotel and Conference Centre has effectively reduced our reliance on hydro-generated electricity by an average of 40%."

Since its installation, the solar plant, with a capacity to generate 0.3 MW of solar power, has surpassed both the national grid and the diesel-powered generator, becoming the primary power source for the hotel.

Spanning an area of 3000 square meters and comprising 650 solar panels, each with a capacity of 450 watts, this solar venture required an investment of half a million US dollars.

RTG's investment in renewable energy, particularly solar technology, aligns with its strategy to mitigate the adverse effects of climate change and reduce greenhouse gas emissions. This move holds particular significance in the current era, where global leaders advocate for a shift away from coal power.

Furthermore, the impact of climate change has led to droughts, affecting the availability of hydroelectric power, especially in Zimbabwe, where the Kariba Power Station, the main power source, faces challenges due to lower water levels.

In addition to the solar initiative, RTG achieved significant financial milestones in the full year leading to December 2023. Revenues surpassed the 200 billion mark, reaching ZWL266.3 billion, compared to ZWL117.7 billion in the previous year.

The growth was primarily driven by a 281% increase in rooms revenue, amounting to ZWL106.4 billion, an 81% growth in food and beverage revenue, totalling ZWL139.2 billion, and a 61% growth in other revenue income, reaching ZWL20.7 billion.

RTG also experienced a notable increase in foreign currency business, despite the strain on US Dollar reserves in the country due to declining export earnings, particularly from mineral commodities. This increase was attributed to the expansion of regional and international business, collectively growing by 129%.

While resort hotels demonstrated significant improvement in performance, with occupancy rates rising from 36% in 2022 to 52% in 2023, city hotels faced lower occupancy rates primarily due to reduced business activity in the first half of the year.

Despite market price escalation and unstable foreign currency exchange rates, RTG maintained a gross profit margin of 72% over the past two years, in line with industry benchmarks. This was achieved through rigorous cost reduction measures aimed at minimizing the impact of market fluctuations.

The financial position of RTG remained robust, with the current ratio improving from 1.01 in 2022 to 1.19. This improvement was a result of prudent cash flow management, reflecting the group's commitment to maintaining a strong financial foundation.

Consequently, RTG achieved an after-tax profit of ZWL27.88 billion, leading to the declaration of a second and final dividend for the year.

This dividend, payable to all ordinary shareholders registered with the company, is denominated in a blend of Zimbabwe Dollars (ZWL) and United States Dollars (USD), amounting to US$260,000.00 (US$0.000104 per share) and ZiG1,761,331.57 (ZiG0,00071 per share) in the respective currencies.

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