Africa-Press – Zimbabwe. HOSPITALITY concern, Rainbow Tourism Group (RTG) is set to expand into Cape Town, South Africa, after signing a US$5,6 million sale and purchase agreement to acquire a seven-storey commercial property for conversion into a branded hotel.
Back in June, RTG chief executive officer Tendai Madziwanyika told our sister newspaper, Zimbabwe Independent, that the group launched a regional expansion drive targeting South Africa’s competitive hotel market.
These efforts involved actively pursuing acquisition and partnership opportunities in Cape Town as part of a broader strategy to diversify its asset base and revenue streams.
RTG’s cross-border pivot marks a significant departure from its historically domestic focus and signals growing investor appetite for high-return tourism assets in southern Africa.
This comes after the group purchased the Montclair Resort & Conference Hotel in Nyanga for US$5 million, with plans to potentially expand its local property portfolio even further.
RTG’s financial annual period ended December 31, 2024 left the firm with US$1,18 to every dollar of short-term debt showing it had enough liquidity to carry out such expansion drives.
Further to this, RTG posted a positive net working capital position of US$3,4 million during the period owing to a growth in foreign currency revenue.
“The board of directors of Rainbow Tourism Group Limited (RTG or the company) wishes to advise shareholders and the investing public that the company is in the process of finalising a strategic acquisition in Cape Town, South Africa,” RTG said in a statement.
“To this end, RTG, through its South African-registered subsidiary, Rainbow Tourism Group (SA) Proprietary Limited, has entered into a sale and purchase agreement with Elleke Hospitality Proprietary Limited for the acquisition of a seven-storey commercial property located at Erf 807, 13 Buitengracht Street, Cape Town.”
RTG said this acquisition marked the hotelier’s entry into the South African market and was aligned with the group’s long-term strategy to expand its hospitality footprint into high-growth regional destinations.
“The property which is currently a commercial asset, will undergo adaptive reuse and refurbishment to transform it into a branded hotel operated under a leading international hospitality group,”RTG said.
“The total consideration for the acquisition is ZAR98 million (approximately US$5,6 million), representing roughly 9,3% of the company’s market capitalisation on the Zimbabwe Stock Exchange (ZSE).”
RTG said Cape Town remained one of the most attractive tourism and investment locations on the continent, benefitting from consistent international arrivals, robust infrastructure, and its position as a gateway city to southern Africa.
According to RTG, the property is a seven-storey commercial building comprising a ground-floor retail unit measuring approximately 221m2 and six upper floors of office space totalling 3 600m2.
The property enjoys a prime location along a major arterial route leading into Cape Town’s central business district, offering high visibility and pedestrian traffic, as well as close proximity to key business and leisure landmarks.
These include the V&A Waterfront, Cape Town International Convention Centre (CTICC), the DHL Cape Town Stadium and the Bo-Kaap tourist district.
“It also offers unobstructed views of the iconic Table Mountain, one of the most recognisable natural landmarks in the world,” RTG said.
“This premium location positions the property as an ideal candidate for conversion into a hotel development that caters to both corporate and leisure travellers.
“Its proximity to the CTICC enhances its suitability for the Meetings, Incentives, Conferences and Exhibitions (MICE) segment, while the surrounding cultural, culinary and recreational attractions boost its appeal to domestic and international tourists alike.”
This strategic investment is aligned with the RTG’s overarching mandate to identify and pursue growth opportunities that support the group’s long-term vision of expansion.
The acquisition will strengthen RTG’s asset base with the group having assets worth US$64,51 million as of the end of last year.
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