Online Reporter
Michael Tome
Business Reporter
Rainbow Tourism Group says it acquired the MSK House property in Cape Town to exploit the strategic link between some of sub-Saharan Africa’s premier tourist destinations, Cape Town and South Africa, where the group owns hotel properties.
MSK House was a commercial and retail multi-storey building located in the Cape Town central business district, functioning primarily as office and educational space rather than accommodation.
The acquisition of the property by RTG, which will be transformed into a hotel, is part of the hotel group’s expansion drive across its regional markets.
Tourism is a vital economic pillar for both Zimbabwe and South Africa, driving billions of dollars in revenue, creating hundreds of thousands of jobs and generating essential foreign exchange that supports local infrastructure, retail and wildlife conservation.
Explaining the group’s regional strategy, RTG chief executive officer Mr Tendai Madziwanyika said the group had developed resilience and expertise, placing it in a strong position to expand beyond the country’s borders.
He said the presence in both destinations would enable RTG to develop integrated tourism packages targeting long-haul travellers from Europe and the United States.
“When tourists arrive in Cape Town, many do not want to leave Southern Africa without visiting Victoria Falls. Being present in both destinations gives us an incredible opportunity to package these experiences together, particularly for the leisure market,” Mr Madziwanyika said.
He added that Cape Town’s growing appeal as a hub for digital nomads and international business travellers would further diversify the group’s customer base.
RTG bought the seven-storey property in August last year for US$7 million and requires a further US$18 million for refurbishments.
Mr Madziwanyika said the company was considering a range of financing options for the remaining capital requirements, supported by its strong balance sheet.
“We are on a 22 percent gearing level, so we have the capacity to borrow if we choose to, or we can inject additional equity. The funding options are readily available,” he said.
The redevelopment will transform the building into an 11-storey branded hotel after RTG secured development rights to increase its height.
The completed property will comprise about 130 hotel rooms and approximately 15 serviced apartments, creating a mixed-use hospitality offering aimed at both short-stay visitors and longer-term guests.
Mr Madziwanyika said more than 20 specialists were already working on the property, which has attracted strong interest from some of the world’s leading international hotel brands, although RTG was not yet ready to announce its preferred partner.
The refurbishment is expected to begin after regulatory approvals are secured by April or May 2027, with construction projected to take about 12 months.
RTG plans to open the hotel in mid-2028.
In the interim, the property continues to generate rental income, limiting holding costs while the group finalises approvals and prepares for redevelopment.
The Cape Town hotel marks one of RTG’s most significant regional expansion projects and highlights the group’s ambition to transform itself into a competitive southern African hospitality player by capitalising on cross-border tourism, branded accommodation and diversified revenue streams.
RTG features a prominent hotel and convention portfolio across Zimbabwe, comprising flagship city hotels, unique resort properties and an expanding regional footprint.
These include Rainbow Towers Hotel and Conference Centre, a 5-star landmark in Harare featuring 305 rooms and the adjacent Harare International Conference Centre (HICC), which seats up to 4 500 people.
It also operates A’zambezi River Lodge, an iconic retreat situated directly on the banks of the Zambezi River in Victoria Falls.
RTG owns Victoria Falls Rainbow Hotel, a vibrant leisure property located right in the heart of the Victoria Falls resort town, Zimbabwe’s tourism hub.
It also operates Bulawayo Rainbow Hotel, a central business and leisure hub located in Zimbabwe’s second-largest city.
