Online Reporter
Michael Tome, Zimpapers Business Writer
RAINBOW Tourism Group (RTG) is set to invest US$1,6 million in capital projects at the iconic Rainbow Towers Hotel in Harare.
According to RTG, US$1,4 million will be allocated towards the construction of a one-megawatt solar plant, refurbishment of restaurants, upgrading of the gym, and development of a wellness track.
The solar plant is expected to improve energy efficiency and reduce the company’s dependence on non-renewable energy sources, contributing to a more sustainable future.
The remaining funds will be used to enhance public areas and refurbish the hotel’s kitchens, aimed at creating a more welcoming atmosphere and improving functionality. Additionally, part of the investment will go towards new features, including an authentic traditional food restaurant and the extension of the coffee shop into landscaped gardens.
The facelift will also involve a comprehensive overhaul and remodelling of the rooms, including wall and floor tiling, new ceilings, updated in-room fittings and fixtures, refurbished bathrooms and brand-new hand and soft furnishings. This follows RTG’s completion last year of refurbishments to all 294 rooms at Rainbow Towers Hotel, including diplomatic suites.
“We plan to spend about US$1,6 million. About a million of that is aligned with our ESG and sustainability targets. We intend to roll out a one-megawatt solar system — similar to the grid-type system we implemented in Kadoma, which has performed exceptionally well and reduced our energy costs by over 40 percent.
“The impact at Rainbow Towers will be even greater. We currently spend around US$50 000 per month on energy here. I can assure you, we’re going to save significantly, and that will positively affect our bottom line immediately. Some of the funds will be directed towards key focus areas including restaurants, the gym, wellness initiatives and public spaces,” said RTG Chief Executive Officer Mr Tendai Madziwanyika during the group’s 26th Annual General Meeting held in Harare last week.
He said the initiatives are designed to enhance ambiance and dining experiences, provide modern facilities for guests, and promote well-being — part of RTG’s commitment to delivering experiences that meet the evolving expectations of its clientele.
RTG has identified several priority investment areas for 2025, including renovations at the New Ambassador Hotel, where it plans to refurbish public areas and meeting rooms at an estimated cost of US$150 000.
The second category includes upgrades to the restaurant, meeting rooms and public areas at Victoria Falls Rainbow Hotel, budgeted at US$200 000. A further US$200 000 is earmarked for completing the remaining two blocks, public areas, spa development, gym installation and thatching at A’Zambezi River Lodge.
This comes as RTG reported a 15 percent increase in revenue to US$20,8 million for the half-year ending June 2025, despite a six percent decline in occupancy rates to 49 percent.
RTG stated that 23 percent of its revenue was earned in foreign currency, totalling US$9,8 million, while revenue per available room (RevPAR) rose by eight percent to US$53.
Profitability indicators also showed positive movement, with gross profit margin increasing by one percent to 68 percent, and EBITDA surging by 68 percent to US$2,4 million.
RTG declared a dividend of US$1,1 million, marking a 10 percent increase compared to the same period last year. The hotel group also reported an 11 percent growth in market share, reaching 30 percent — underscoring its strong position in the hospitality sector.
