Africa-Press – Zimbabwe. HOSPITALITY concern, Rainbow Tourism Group (RTG) is advancing the next phase of its capital expenditure programme by investing in its Nyanga, Kadoma and South African properties, as investor confidence lifted its market value by US$75,98 million in 2025.
RTG’s market capitalisation on the Zimbabwe Stock Exchange rose to US$134,34 million by the end of last year, from US$58,36 million in the prior year, reflecting a sharp re-rating by investors.
This comes as the group invested US$15,5 million to refurbish its key properties and acquire new entities.
The refurbishments took place at RTG’s A’Zambezi River Lodge and Victoria Falls Rainbow Hotel in Victoria Falls as well as New Ambassador Hotel and its flagship Rainbow Towers Hotel and Harare International Conference Centre in Harare’s central business district.
Meanwhile, the acquisitions were of a seven-storey commercial building in Cape Town, South Africa, that RTG is repurposing into a hospitality business and the Victoria Falls-based tour operator, Batoka Safari.
Hence, RTG’s next phase of its capital programme will be to refurbish its Montclair Resort & Conference Centre in Nyanga, Kadoma Hotel & Conference Centre as well as redeveloping of the Cape Town property.
“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,” RTG chairman Douglas Hoto said in a statement attached to the group’s annual results for the period ended December 31, 2025.
“The remaining 50% of room inventory at both A’Zambezi River Lodge and Victoria Falls Rainbow Hotel underwent substantial upgrades. The two properties are now fully refurbished.”
He said these improvements strengthened the competitiveness and market positioning of these flagship properties.
“Looking ahead, the group will advance to the next phase of its capital investment programme in 2026.
“Planned initiatives include major product enhancements at the recently acquired Montclair Resort & Conference Centre and Kadoma Hotel & Conference Centre,” Hoto said.
“These investments form part of a structured, portfolio‐wide modernisation plan designed to deliver a consistent, world‐class guest experience.
“Preliminary works for the redevelopment of MSK House in Cape Town into a four‐star luxury hotel have commenced.”
He said full construction activity at the Cape Town property was scheduled to begin in 2027, subject to the successful completion of all regulatory approvals and compliance processes.
“Despite increased investment activity and ongoing portfolio expansion, the group maintained a stable financial position during the year,” Hoto said.
“Gearing increased to 24% as the group strategically utilised debt facilities to finance high‐value growth opportunities aligned with its long‐term value creation strategy.”
This comes as the group posted a 28% increase in foreign currency generation to US$24,1 million last year, from the prior year, supported by continued growth in international tourist arrivals in Victoria Falls and an increase in regional conferences.
Consequently, revenue grew 13% to close the period at US$50,26 million from the prior year.
However, RTG’s acquisitions left the group with a new cost line of US$1,6 million adding to overall expenses, which moderated profitability, resulting in a profit after tax of US$3,25 million from 2024’s US$5,36 million.
This is a short-term effect, however, as the group’s market capitalisation has risen about 25% since the start of the year to a new record of US$167,96 million as of Wednesday.
“The current capital structure remains appropriate for the expansion phase, with the group committed to strengthening liquidity metrics through improved operating cash flows and disciplined capital management,” Hoto said.
RTG remains optimistic about its performance for the 2026, supported by growth in the domestic market, increased business from the regional and international leisure markets, and usage of its digital hospitality Gateway Stream platform.
“The performance will also be driven by new businesses acquired in 2025, that is revenue streams from Montclair Resort & Conference Centre and the tour operating entity that will be consolidated under Heritage Expeditions Africa (HExA),” Hoto said.
RTG’s acquisitions lifted total assets to US$82,74 million last year, from the prior year’s US$64,51 million.
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