daniel chigunwe
The Rainbow Towers Group (RTG) has signed a share purchase agreement for the entire shareholding in Briolette Services, trading as Montclair Hotel and Casino, for US$5 million as part of the group’s strategy and growth objectives that will enable it to expand its footprint in Eastern Highlands.
In a statement, RTG said the deal is a strategic move that aligns with RTG’s five-year strategy and growth objectives, enabling RTG to enhance its footprint in the Eastern Highlands, a key tourism and business destination in Zimbabwe.
“This investment is supported by a robust business case, with clear potential for revenue growth through increased market penetration and the expansion of conferencing and hospitality offerings.
“By leveraging Montclair’s prime location, RTG will strengthen its competitive position, capitalise on rising demand in the region, and drive long-term value creation,” said Tapiwa Mari, the group secretary.
He said Montclair will also benefit significantly from the synergies created by becoming part of RTG.
“Leveraging RTG’s well-established brand equity, the hotel will deliver a seamless, high-quality experience to clients across the group’s portfolio of resorts and business facilities. This consistency will help strengthen customer loyalty and attract new clientele, enhancing Montclair’s competitive edge in the market,” said Mari.
Additionally, he said the group’s robust marketing and distribution network will further elevate Montclair’s visibility, driving increased occupancy and revenue.
Moreover, Montclair will gain access to RTG’s operational expertise, achieving significant economies of scale in key business functions.
Mari said procurement processes will be streamlined, allowing the hotel to benefit from centralised purchasing power, which will reduce costs for essential goods and services.
He added that administrative efficiencies will be realised through shared back-office functions such as finance, IT, and legal services, enabling Montclair to focus on core operations.
“In human capital management, RTG’s centralised training programs and talent development initiatives will enhance staff expertise, ensuring a consistently high standard of service across all departments. These synergies will position Montclair as a more efficient and competitive operation, contributing to sustainable profitability and long-term value creation to RTG shareholders,” said Mari.
According to the statements, the assets involved in the transaction include the business of Montclair Hotel and Casino as a going concern with all its related assets, and the hotel has a room capacity of 85.
It also has a portion of land surrounding the hotel comprising approximately 24 hectares of land, and this will be subject to the subdivision of the 87.2265 hectares, with RTG taking ownership of approximately 24 hectares, leaving approximately 63 hectares outside the company and in the hands of the current shareholders.
Other assets are the lease agreement relating to the Claremont Golf Course, buildings that include the main hotel building, the casino buildings, staff housing (south and north sections), Rayton apartments in Nyanga Township, and all other hotel-related amenities.
RTG is a leading player in the tourism and hospitality industry in Zimbabwe, offering three distinct quality hotel brands: the iconic 5-star Rainbow Towers Hotel & Conference Centre, the majestic 4-star A ‘Zambezi River Lodge, and the 3-star Rainbow Hotels (Bulawayo Rainbow Hotel, Kadoma Hotel & Conference Centre, and New Ambassador Hotel).
Briolette Services (Private) Limited (Briolette) is a company wholly owned by a consortium of 23 shareholders. Briolette owns the Montclair Hotel and Casino.
Briolette acquired Montclair in 1997, and the hotel is a 3-star conference and leisure venue nestled in the Eastern Highlands in the misty mountains of Nyanga, 87 km from Mutare and 250 km from Harare.
RTG said over the past three years, following the COVID-19 pandemic, the hotel has maintained an average occupancy rate of 50 percent, and during this period, it has consistently generated operating profits, reflecting a strong financial performance.
Mari said the hotel also boasts a healthy financial position underpinned by a robust asset base. “The hotel’s primary customer segments include non-governmental organisations (NGOs) and private family leisure travellers, demonstrating its ability to cater to both corporate and recreational markets.
“This transaction is expected to significantly enhance the group’s overall performance, strengthening its market presence by extending its geographical footprint and growth potential,” said Mari. — BH24
Bongani Ndlovu