Online Reporter
Tawanda Musarurwa
ZIMBABWE Stock Exchange-listed hospitality operator, Rainbow Tourism Group Ltd (RTG) reported revenue of US$50,3 million last year, up 13 percent from US$44,4 million a year earlier, according to its newly released annual report.
Net profit, however, fell to US$3,3 million from US$5,4 million in 2024 as the company absorbed higher costs tied to two acquisitions.
The group, which operates Rainbow Towers, Bulawayo Rainbow and Kadoma Rainbow hotels along with resorts in Victoria Falls, said foreign-currency revenue climbed 27 percent to US$24,1 million and now accounts for 48 percent of total revenue, up from 43 percent the previous year.
Occupancy rose to 57 percent from 54 percent, and the average daily room rate increased 7 percent to US$109, lifting revenue per available room 13 percent to US$62.
Gross profit margin improved four percentage points to 74 percent.
Earnings before interest, tax, depreciation and amortisation fell 20 percent to US$7,8 million from US$9,7 million, which the company attributed to acquisition-related interest, added depreciation, and legal and advisory fees linked to purchases in Cape Town and at Montclair Resort.
Excluding those one-time costs, adjusted profit before tax rose 54 percent to US$5,4 million, the group said.
“Revenue grew by 13 percent to US$50,3 million, while foreign-currency earnings increased by 27 percent to US$24,1 million,” group chief executive Mr Tendai Madziwanyika said.
“Excluding the 2025 acquisitions, the core portfolio delivered a solid 8 percent growth rate.”
The company spent US$15,5 million on capital projects during the year, including the acquisitions of Montclair Hotel and Conference Resort, a Cape Town property known as MSK House, and Batoka Safaris.
“Total assets grew to US$82,7 million from US$64,5 million. Gearing rose to 24 percent from 8 percent as the group drew on credit facilities to fund the deals.
The board declared a second and final dividend of US$1,7 million, bringing total dividends for the year to US$2,8 million.
Of the latest payout, US$650 000 will be paid in foreign currency and the remainder in local currency.
Rainbow Tourism Group said the withdrawal of USAID funding cost it an estimated US$3 million in foregone revenue during the year, as Government austerity measures and delayed settlements also weighed on domestic demand.
Looking to 2026, the company said it expects a calendar of regional and international conferences in Harare and Victoria Falls, along with its refurbishment programme, to support further growth in occupancy and room revenue.
