Zimbabwe’s leading hospitality group Rainbow Tourism Group recorded a 13% increase in revenue to US$50.3 million for the financial year ended 2025, supported by acquisitions, stronger foreign currency earnings and growing investment in renewable energy, although expansion-related costs weighed on profitability.

In a statement accompanying the results, board chairperson Douglas Hoto said the group maintained solid momentum despite a challenging operating environment.

“The Group delivered a robust performance during the year under review, posting double-digit revenue growth driven by innovation and the continued strength of its diversified hospitality portfolio,” Hoto said, adding that “this achievement was recorded despite persistent market liquidity challenges and a reduction in NGO-related business.”

Foreign currency revenue grew 28% to US$24.1 million, reflecting improved international travel demand and a rebound in conferencing activity, particularly in Victoria Falls.

“Foreign currency revenue strengthened significantly, increasing by 28% to US$24.1 million… supported by continued growth in international tourist arrivals… and an increase in regional conferences,” Hoto said.

RTG’s total asset base expanded 28% to US$82.7 million following strategic acquisitions, including Montclair Hotel and Casino, MSK House in South Africa and Batoka Safaris, which collectively contributed 8% to group revenue.

“The Group’s financial position remains strong, evidenced by a 28% increase in total assets… driven primarily by the strategic acquisition of assets,” Hoto said.

Despite revenue growth, earnings before interest, tax, depreciation and amortisation (EBITDA) declined to US$7.9 million from US$9.7 million, largely due to US$1.6 million in acquisition-related expenses.

“While essential for supporting long-term growth, [these costs] contributed to a temporary moderation in earnings performance,” he said.

Chief executive Tendai Madziwanyika said the results reflect a deliberate strategy to diversify income streams and strengthen resilience.

“Our resilience stems from not relying on a single revenue stream and our ability to continuously innovate and adapt quickly to market dynamics,” Madziwanyika said.

Operational performance improved during the year, with occupancy rising to 57% from 54%, while the average daily room rate increased to US$109. Revenue per available room climbed 13% to US$62, signalling firm demand despite refurbishment works that temporarily affected about 3,200 room nights.

Alongside financial growth, RTG accelerated sustainability initiatives, announcing plans to develop a two-megawatt solar plant at Rainbow Towers in 2026.

“The system is projected to produce 2,942,838 kWh annually and, being grid tied, will enable surplus energy to be fed into the national grid,” Hoto said.

The project builds on the group’s Kadoma solar installation, which generated 270,984 kWh and reduced energy costs by 31%.

“Our focus on renewable energy has been a deliberate and strategic effort to reduce our environmental footprint and enhance operational efficiency,” Madziwanyika said.

Beyond operations, RTG invested US$75,000 in community programmes and expanded its employee housing scheme to cover 53% of staff as part of broader environmental, social and governance commitments.

While management remains optimistic about tourism demand and future expansion, the results underline the balancing act between aggressive growth investments and short-term profitability pressures within Zimbabwe’s constrained operating environment.