Business Reporter
TOP hospitality concern, Rainbow Tourism Group (RTG) has sustained an upward performance trajectory, posting revenues of US$50,3 million in the latest reporting period.
RTG navigated through a tough terrain characterized by persistent market liquidity challenges and a reduction in NGO‑related business following the withdrawal of donor funding by key international partner.
Presenting the group’s performance for the year ended December 31 2025, RTG board chairman, Douglas Hoto said the odds were defied.
“Revenue increased by 13% to USD50.3 million, supported by a significant 28% growth in foreign‑currency earnings. The Group’s financial position remains strong, evidenced by a 28% increase in total assets to USD82.7 million, up from US$ 64,5 million in the prior year.
The strong performance was attributed to the strategic acquisition of assets, namely Montclair Hotel and Casino in Nyanga, MSK House in Cape Town, South Africa, and Batoka Safaris, a destination management entity based in Victoria Falls.
RTG contends that these carefully selected investments are aligned with the Group’s long‑term expansion strategy and are expected to enhance future earnings capacity.
Foreign‑currency revenue strengthened significantly, increasing by 28% to USD24.1 million (2024: USD18.9 million), supported by continued growth in international tourist arrivals in Victoria Falls and an increase in regional conferences. The Group’s financial position remains strong, evidenced by a 28% increase in total assets to USD82.7 million, up from USD64.5 million in the prior year.
Occupancy increased by 6% to 57% (2024: 54%), despite the temporary displacement of approximately 3,200 room nights in the first quarter of 2025 due to planned refurbishments across key properties. Average Daily Rate (ADR) strengthened to USD109 (2024: USD102), while rooms Revenue per Available Room (RevPAR) increased by 13% to USD62 (2024: USD54), reflecting improved demand across the portfolio.
During the year, the Group invested USD15.5 million in capital expenditure, with USD13.4 million directed towards the acquisition of new business entities and the remainder allocated to the refurbishment of key properties. The remaining 50% of room inventory at both A’ Zambezi River Lodge and Victoria Falls Rainbow Hotel underwent substantial upgrades.
