- Record Occupancy: Of 52% for the first time in HY
- Successful Refurbishments: Significant upgrades to the flagship Rainbow Towers Hotel, HICC
- Strong Financial Growth: Revenue doubles to US$18 million, with a 141% increase in EBITDA
Harare- Rainbow Tourism Group (RTG), the second-largest hotel group after African Sun, has achieved a remarkable occupancy rate of over 50% in the six months ended 30 June 2024.
This marks a historic milestone for the group, largely driven by a resurgence in conferencing and the recovery of tourism following the COVID-19 pandemic.
Occupancy Rate is a measure of how many available rooms are occupied, indicating demand and operational efficiency.
“A particularly encouraging development has been the increase in foreign tourists visiting Zimbabwe, alongside a resurgence in the domestic business segment.
“These factors have driven a sturdy growth in our occupancy rates, which have now surpassed pre-COVID 19 pandemic levels.
“This is the first time in history that the Group has broken the 50% occupancy mark at half year,” Douglas Hoto, the group’s chairperson said.
RTG operates six hotels, with its flagship property, the Rainbow Hotel in Harare, playing a prominent role. The hotel hosted seven heads of state during the SADC Summit in August 2024, following a significant refurbishment undertaken in preparation for the event.
In a competitive environment, major hotel groups have prioritized quality through strategic refurbishments. During this period, African Sun divested 2 hotels for approximately US$7 million into the refurbishment of its properties . RTG, too, has been actively enhancing its offerings, particularly at the Rainbow Towers Hotel and Conference Centre, which underwent extensive renovations from March 29 to July 31, 2024.
The refurbishment at the Rainbow Towers included the transformation of 24 standard rooms into six diplomatic suites tailored for high-profile guests. This upgrade increased the hotel’s total to nine diplomatic suites and one presidential suite. Additionally, 48 standard rooms were modernized into luxurious accommodations, and guest elevators were renewed to enhance security with a new floor access control system.
The Harare International Conference Centre (HICC), Africa's largest conference facility, also received substantial upgrades, further establishing the Rainbow Towers as a premier destination for high-profile events.
As a result,t the group successfully hosted the SADC Summit and the SADC Industrialisation Week from July 28 to August 8, 2024, significantly boosted occupancy rates and revenue.
Financial Performance Overview
As a result of these strategic initiatives, RTG recorded a 13% increase in occupancy rates, reaching 52% in the first half of 2024 the first time in history. Revenue surged to US$18 million, more than doubling from US$8 million, while the cost of sales rose to US$6 million from US$2 million.
Operating expenses increased to US$10 million from US$5 million, yet profit from operations remained robust at US$716 million, up from US$192.7 million.
The group also achieved a remarkable 141% increase in EBITDA, with improved margins of 67%. However, due to associated costs and foreign exchange losses, the group’s profit after tax (PAT) narrowed to US$1.5 million, down from US$6.6 million.
Looking ahead, RTG is optimistic about a strong performance in the latter half of the year, typically a period of recovery in the tourism industry. The resurgence in international tourism is expected to surpass previous post-pandemic records at RTG hotels.
The group aims to protect and enhance profit margins through diligent cost management and innovative business models.
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