RTG half-year occupancy rate decline
Rainbow Tourism Group (RTG) says the occupancy rate for the half-year period to June 30, 2023, closed at 46 percent, marking a modest 4 percent decrease compared to the 48 percent achieved in the same period in 2022.
Group chairman Douglas Hoto said that despite that, the group displayed commendable resilience in maintaining business volumes, primarily driven by segments such as accommodation and outside catering.
“Further bolstering the group’s performance were the tours and activities business; Heritage Expeditions Africa; and the tech business; Gateway Stream,” he said in a commentary of the financials.
The Group’s half-year revenue grew 41 percent to $49,6 billion, compared to $35,2 billion realised in 2022.
Hoto said the growth in revenues demonstrates the group’s agility in the face of a difficult operating environment.
The group’s gross margins for the review period stood at 65 percent, slightly lower than the 72 percent achieved in 2022.
“This decline in gross profit margins is directly attributable to increased costs as driven by inflation during the reporting period,” he said.
Hoto said the financial position of the group remains robust, and the current ratio has improved to 0,88, signifying a positive upturn from the 0,79 recorded as of December 31, 2022.
“This enhancement can be directly attributed to the judicious implementation of cash flow management strategies,” he said.
During the period under review, Hoto said the group allocated $2,6 billion (equivalent to US$1,7 million) towards capital expenditure.
Hoto said the primary focus of the capex investment was directed towards the enhancement of essential areas within all Group hotels.
“Notably, this encompassed the completion of a comprehensive upgrade of the suites at Rainbow Towers Hotel and Conference Centre, including the prestigious presidential suite.
“This strategic investment underscores the Group’s commitment to improving its facilities and services, with the overarching goal of elevating the overall guest experience to world-class status,” he said.
He added that such targeted improvements align seamlessly with the group’s long-term growth objectives as it continues to position itself as a leader in the hospitality industry.
Hoto said the group holds an optimistic outlook regarding the resurgence of the industry in the second half of the year.
He said the last half of the year usually contributes around 60 percent of the total business, led by conferencing and foreign leisure business.
“Our focus will be on maintaining and enhancing profit margins through diligent cost management and the adoption of innovative business models.
“We remain dedicated to leveraging synergies with our valued business partners and nurturing a motivated workforce to establish enduring value for our shareholders,” he said.
Hoto said the group is steadfastly pursuing the expansion of its hotel portfolio, leveraging its debt-free financial position.-businessweekly
