Rainbow Tourism Group has posted strong results for the year ending December 31, 2024, with profit after tax climbing 18% to US$5.4 million, up from US$4.6 million in 2023.
The performance was underpinned by rising foreign currency revenues and a rebound in guest demand across its portfolio.
Board chairperson Douglas Hoto said foreign currency earnings played a decisive role in driving growth.
“A key highlight was the 15% growth in foreign currency revenues, rising from US$16.4m to US$19m, accentuating the group’s ability to attract international business,” he noted.
Total revenue increased to US$44.4 million, compared to US$43.6 million the previous year. Occupancy rose to 54%, reflecting solid recovery in both accommodation and conferencing, with resort hotels surpassing pre-pandemic levels.
“Resort hotels experienced a robust rebound in 2024, while city hotels continued to strengthen despite policy headwinds,” Hoto added.
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Earnings before interest, tax, depreciation and amortisation jumped 52% to US$9.7 million, driven by higher revenues and efficiency measures. Shareholders will benefit from a US$2.5 million dividend, with US$500,000 payable in foreign currency and US$1 million in local currency.
The year also saw RTG complete its US$5 million acquisition of Montclair Casino and Hotel. Chief executive Tendai Madziwanyika hailed the deal as a “fantastical acquisition,” revealing that the property achieved over 100% revenue growth in July and August alone.
Hoto said the move strengthens RTG’s growth trajectory: “By integrating Montclair Hotel into our portfolio, we are well-positioned to capitalize on the increasing demand for quality hospitality experiences, reinforcing our commitment to sustainable expansion and long-term value creation.”
The acquisition has effectively doubled RTG’s revenue stream, with foreign currency earnings growing 23% to US$9.8 million, contributing significantly to overall revenue expansion.
Looking beyond Zimbabwe, the group has also expanded into South Africa with a Cape Town branch, part of a broader strategy to diversify under tight monetary conditions.
Madziwanyika explained the rationale: “One of the ways that we are managing the exchange rate matter is also to expand… whether exchange rate goes down in South Africa, it probably will be stable or go better in Zimbabwe. It’s actually a way of growing shareholder value.”
Despite global uncertainties and geopolitical risks, RTG expressed confidence in the hospitality sector’s resilience and its own ability to sustain growth.
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