RTG declares final dividend
HOTELIER, Rainbow Tourism Group (RTG) has declared a final dividend of US$2,5 million for financial (FY) 2024, from US$1,5 million the prior year.
This comes after the RTG board recommended a second and final dividend of US$1,5 million as Zimbabwe’s tourism industry rebounded from the Covid-19 impact.
Tourism is one of Zimbabwe’s key economic sectors, which hit the Government target of US$5 billion industry in 2024.
Like many other economies across the world, Zimbabwe’s tourism industry took a hit after 2019, following the Covid-19 outbreak, which forced many countries into national lockdowns and enforcement of restrictions on global travelling as the world battled to contain the spread of the pandemic.
RTG said US$500 000 (0,020 US cents per share) will be paid in foreign currency while the balance of US$1 million (1,057 ZiG cents per share) will be disbursed in the local currency.
In its financial statement for the year ended December 31, 2024, RTG board chairperson Mr Douglas Hoto said the group’s continued strong performance was driven by four percent growth in occupancy and a 15 percent rise in foreign currency revenues.
A disciplined cost management strategy resulted in Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) surging by 52 percent to US$9,7 million.
Despite economic challenges, geopolitical tensions and global conflicts, Mr Hoto expressed confidence in the resilience of Zimbabwe’s tourism and hospitality industry.
He noted that with strong fundamentals and strategic adaptability, RTG remained optimistic about its long-term growth.
A major highlight of RTG’s expansion strategy was the acquisition of Montclair Hotel and Casino, set to broaden the group’s market reach and enhance service offerings.
“This acquisition presents significant opportunities for revenue growth, operational synergies and enhanced brand positioning.
“By integrating Montclair Hotel into our portfolio, we are well-positioned to capitalise on the increasing demand for quality hospitality experiences, reinforcing our commitment to sustainable expansion and long-term value creation,” said Mr Hoto.
The US$5 million acquisition, concluded in 2024, involves RTG acquiring all ordinary shares of Briolette Services, the previous owners of Montclair Hotel and Casino in Juliasdale, Nyanga.
The resort, previously owned by a consortium of 23 indigenous shareholders, boasts 85 rooms, a nine-hole golf course and an in-house casino.
In the period under review, RTG achieved an occupancy rate of 54 percent from 52 percent recorded in 2023, driven by growth in both accommodation and conferencing segments. Resort hotels rebounded strongly, surpassing pre-Covid-19 occupancy levels.
On the other hand city hotels showed steady growth, despite headwinds from Government policy interventions. Total revenues rose two percent to US$44,4 million, up from US$43,6 million in 2023, while gross profit margins improved to 70 percent from 69 percent the prior year.
A key highlight was the 15 percent growth in foreign currency revenues, from US$16,4 million in 2023 to US$19 million in 2024, underscoring RTG’s ability to attract international business.
Last year, RTG entered into a strategic partnership with Switzerland-based Grand Metropolitan Hotels BV (GMH), a Dutch-registered private hospitality company. GMH is a Dutch registered private company with limited liability incorporated under Dutch law and headquartered in Roermond, the Netherlands.
The partnership will position RTG as one of the largest hospitality companies in Africa, which will focus on management contracts, franchises, leases and affiliations and the exploitation of online opportunities.
It entails forming joint venture entities and leveraging various opportunities within the hospitality and tech industries throughout the African continent.-chronicle
