- RTG posted a 15% revenue increase in H1 2025, raising its market share from 27% to 30%, driven by strategic acquisitions and hotel refurbishments despite a 6% dip in occupancy from temporary closures
- The Montclair property, saw revenues more than double within two months, while the SA sales office contributed a 76% revenue surge
- RTG invested US$30 million in property upgrades, expanded into integrated tourism services with the pending Batoka Safaris acquisition
Harare - Rainbow Tourism Group Limited (RTG), the second-largest hotelier group in Zimbabwe has seen a 15% uptick in revenue during the first half of 2025, entering the second half on higher-note.
The increase was spurred by acquisitions and refurbishments which have paid off leading to an increase in market share from 27% to 30%.
This was despite occupancy rates slightly down by 6% as three hotels were closed for about six weeks during the refurbishment process including Victoria Fals Rainbow Hotel
The Montclair property, acquired for US$5 million in late 2024, has quickly become one of RTG’s fastest-growing assets, with revenues more than doubling within just two months of integration.
Refurbished facilities and expanded conferencing capacity tapped into pent-up demand for leisure and business travel in the Eastern Highlands, delivering 100% revenue growth.
RTG’s regional sales and marketing office in Johannesburg also contributed to the uplift, posting a 76% surge in revenues and underlining the importance of South Africa as a key source market for Zimbabwean tourism.
Over the past two years, RTG has completed a full makeover of flagship properties, including all 294 rooms at Rainbow Towers, the complete refurbishment of the New Ambassador Hotel’s 72 rooms, and significant upgrades at A’Zambezi River Lodge and Victoria Falls Rainbow Hotel.
By elevating its product to international standards, RTG has been able to command stronger rates and improve occupancy levels, particularly among corporate and international travellers seeking reliable quality.
Beyond traditional hotel operations, RTG has been expanding its footprint into integrated tourism services. The pending acquisition of Batoka Safaris, which will bring cruise boats, transfer buses, a game-drive vehicle, and a prime jetty site under its portfolio, marks a decisive shift into vertical integration.
Once consolidated with the group’s existing Heritage Expeditions Africa (HExA), the deal will allow RTG to package accommodation with activities and transfers, capturing a larger share of tourist spend within its ecosystem.
The group has balanced reinvestment with shareholder returns, paying out US$9.5 million in dividends since 2018 at an average payout ratio of 40%, while investing US$30 million into product improvement.
It has also introduced innovative cost-saving measures, such as dedicating 5,000m² of its Nyanga estate to horticulture, reducing food costs by 15% and insulating the business from volatile imports.
Looking ahead, RTG remains optimistic betting on ‘’ moving to being a blue chip,’’ according to the group CEO Tendai Madziwanyika and plans to convert the Cape Town acquired property into a 4-star hotel in partnership with an international brand.
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