adminratio. The strategies are the brainchild of new chief executive Mr Tendai Madziwanyika, who was appointed following the departure of Mrs Chipo Mtasa last year.
RTG shareholders have disagreed on how the company should be recapitalised with property magnate Nicholas van Hoogstraten, who holds 36,5 percent shareholding, insisting the board should be dissolved as it had allegedly run down one of the country’s largest hospitality groups by market capitalisation. A new board led by Mr Joseph Kanyekanye was elected last year.
RTG is targeting 50 percent occupancy this year and the rate is projected to reach 55 percent and 60 percent in 2014 and 2015, respectively.
Speaking at the group’s annual general meeting yesterday, Mr Madziwanyika said the group had registered a positive second quarter operating performance .
“This indicates that the measures taken at the end of the beginning of the year to restructure and bring new skills into the business are starting to pay off,” he said.
He said the new team had implemented the different strategies that were aimed at revenue generation, resuscitation of facilities and service re-engeneering as well as maximum utilisation of available resources.
Mr Madziwanyika said the recapitalisation initiatives that had been implemented had the effect of reducing the cost of funds from 24,6 percent last year to the current 12 percent.
RTG managed to raise US$4,5 million through a rights issue at the beginning of this year which was applied towards the retirement of part of the short- term debt. The group also obtained a US$10 million loan facility which was applied to restructuring more of the short-term debt into a three-year facility.
He also said refurbishment of the Rainbow Towers Hotel and Conference Centre which had been temporarily stopped in 2012 had now resumed.
“We anticipate releasing the first batch of 48 rooms by the end of July and the rest of the rooms by the end of the year,” he said.
He added that the refurbishments were expected to be completed by the first quarter of 2014.
The group’s revenues have been on an upward trend since the beginning of the year following a marked improvement in occupancy.
“Several hotels under the group are now showing positive occupancy growth rates. The hotels have not only managed to achieve their budgeted revenues but also achieved an improvement in conferencing business and yield management respectively,” Mr Madziwanyika said.
Online Reporter