Online Reporter
Walter Muchinguri and Tawanda Musarurwa
RAINBOW Tourism Group (RTG) is targeting US$100 million in revenue by 2027, more than triple the US$27,3 million it earned in 2012.
The hotelier plans to get there through acquisitions and by turning underused property into paying rooms, according to a trading update presented at its 27th annual general meeting (AGM) on Tuesday.
The group posted revenue of US$50,3 million in FY2025, up 13 percent from US$44,4 million.
Addressing shareholders, CEO Mr Tendai Madziwanyika said the group is targeting US$70,1 million this year before the jump to US$100 million by the end of next year.
Latest numbers suggest the group is on course. For the eight months to August 2026, revenue reached US$38,2 million, up 33 percent from US$28,8 million a year earlier.
Occupancy rose to 57 percent from 50 percent, while gross margin improved to 76 percent from 73 percent.
Profitability is expected to rise faster than sales. Earnings before interest, taxes, depreciation and amortisation (EBITDA) is projected to climb from US$7,8 million in FY2025 to US$17,5 million this year and US$35 million in FY2027.
Profit before tax is targeted to grow from US$4,2 million to US$12,4 million, then US$30 million, lifting the PBT margin from 8 percent to 18 percent and then 30 percent.
Nyanga bet
The Eastern Highlands is at the centre of the strategy. RTG has deployed US$10,6 million across two Nyanga properties, Montclair Resort and Conference and the Nyanga Town and Leisure Resort.
Initial acquisition costs came to US$5 million, with a further US$5,6 million spent on subsequent works.
Montclair absorbed US$7,5 million of the total and Nyanga Town and Leisure Resort US$3,1 million.
Together the two properties grew from 133 rooms to 190. Montclair rose from 85 to 110 rooms through 25 conversions, including dilapidated staff housing turned into guest accommodation.
Mr Madziwanyika said Nyanga Town and Leisure Resort went from 48 to 80 rooms through 32 new builds.
Conferencing capacity at Montclair more than tripled, from 200 to 650 delegates. With 80 at Nyanga Town, the two properties can now host 730.
RTG expects the money to earn its keep. Montclair is projected to pay back in 5,5 years with an internal rate of return of 21 percent.
And Nyanga Town is projected to pay back in 4,9 years with an IRR of 34 percent. The Nyanga investment sits within a broader acquisition drive.
Total assets rose 28 percent to US$82,7 million in FY2025, and acquisitions and capital expenditure totalled US$13,4 million, up from US$2,1 million the previous year.
The year’s strategic purchases were Montclair, MSK House in Cape Town and Batoka Safaris. MSK House is RTG’s first move beyond Zimbabwe.
The property, at 13 Buitengracht Street in Cape Town, comprises a 126-room hotel and 10 apartments under an international brand. Approvals are in their final stages, with ground-breaking set for 1 April 2027.
The CEO said lessons from Montclair were being applied across the group, delivering shorter time to market, lower roll-out costs and quicker returns to shareholders.
The group’s room stock has grown from 879 to 1 236, an addition of 357 rooms.
Shareholders have shared in the growth.
RTG paid US$2,8 million in dividends for FY2025, up 12 percent, and had paid US$1,25 million by August this year, 14 percent more than the US$1,1 million paid in the same period last year.
Foreign currency now makes up 48 percent of revenue, up from 43 percent, and capital expenditure to date this year stands at US$4,9 million, up 133 percent.
