RTG records increase in turnover

Kanyekanye the increase in turnover was driven by an improvement in conferencing business and the average room rate.
“The average room rate grew from US$71 to US$81 although our room occupancy dropped by 2 percent from 41 percent to 39 percent,” he said.
The group’s market mix was 78 percent local and 22 percent foreign while in the previous period the mix was 79 percent local and 21 percent foreign.
Despite the growth in turnover the group suffered a pre-loss tax of US$2,3 million due to high operating costs.
A number of factors that included an increase in employment costs and utilities of 33 percent and 34 percent respectively weighed down the group’s performance.
As a result the Group’s continuing operations achieved a positive Earnings before interest, taxes, depreciation, and amortisation of US$88 000 down from US$2,1 million during the same period last year.
Short-term borrowings for the group closed the period at US$12,6 million while long-term borrowings closed at US$10,7 million.
Mr Kanyekanye said they were working on the finalising an implementation plan for the recapitalisation of the Group, which will be used to retire short-term debt and complete the group’s refurbishment exercise.
Some of the capital projects that the group is working on include the refurbishment of it flagship facility, the Rainbow Towers Hotel and Rainbow Hotel Mozambique.
The refurbishment of Rainbow Towers is expected to be complete by January 30 next year while the refurbishment of Rainbow Hotel Mozambique is expected to commence this month after the procurement of the bulk of material required for the exercise.
Other properties to be upgraded and refashioned include Bulawayo Rainbow Hotel, Kadoma Hotel and Conference Centre and the Victoria Falls Rainbow Hotel.
Mr Kanyekanye said the projects would be funded through internally generated resources as well as proceeds from the recapitalisation exercise.
He also highlighted that the construction of the 140-roomed Beitbridge Hotel project was nearing completion and it will be opened in January next year.
Looking ahead Mr Kanyekanye said the group would be focusing on the disposal of non-core assets, the reviewing of the Copperbelt operations in Zambia in view of their suboptimal performance and the improvement in operations.
“Focus will remain on revenue growth, reduction of costs, improvement of profit margins and generation of free cash-flows in line with specific turnaround strategies,” he said.
The Group is looking at completing the sale of Matetsi Water Lodge during this quarter.
This followed the successful disposal of other non-core assets Touch the Wild  (Private) Limited and Tourism Services Zimbabwe early this year.