Leading hospitality operator, Rainbow Tourism Group (RTG) has reported strong financial results for the year ending 2025 with revenue rising by 13% to US$50.3 million.
The growth, up from US$44.4 million recorded in 2024 comes despite ongoing economic challenges including liquidity constraints and reduced donor-funded business.
In a statement accompanying the results, board chairperson Douglas Hoto said the performance was driven by innovation and the strength of the group’s diversified portfolio.
“The Group delivered a robust performance… posting double digit revenue growth driven by innovation and the continued strength of its diversified hospitality portfolio,” he said.
RTG also reported a 28% increase in foreign currency earnings to US$24.1 million supported by rising international tourist arrivals particularly in Victoria Falls and increased regional conference activity.
The group’s total assets rose by 28% to US$82.7 million, largely due to strategic acquisitions.
These include the Montclair Hotel and Casino in Nyanga, MSK House in Cape Town and Batoka Safaris, a Victoria Falls-based tour operator.
According to Hoto, the acquisitions are part of a long-term strategy to expand revenue streams and strengthen the company’s market position.
Occupancy levels also improved, rising to 57% from 54% the previous year despite temporary room closures for refurbishments. Average daily room rates increased to US$109, while revenue per available room climbed 13% to US$62.
However, earnings before interest, tax, depreciation and amortisation (EBITDA) fell to US$7.9 million, down from US$9.7 million in 2024.
Hoto attributed the decline to US$1.6 million in costs linked to acquisitions.
“While essential for supporting long-term growth, these costs contributed to a temporary moderation in earnings performance,” he said.
Despite this, gross profit margins improved to 74% up from 70% reflecting tighter cost controls and operational efficiencies.
Chief executive Tendai Madziwanyika said the results demonstrate the resilience of RTG’s diversified business model.
“Our resilience stems from not relying on a single revenue stream and our ability to continuously innovate and adapt quickly to market dynamics,” he said.
He highlighted initiatives such as the RTG Agro project which produces fresh vegetables for the group’s hotels, helping reduce costs while improving quality.
Looking ahead, RTG says it is optimistic about future performance, citing strong demand, increased international travel and the benefits of recent investments.
“These strategic investments have strengthened RTG’s market position… and we are optimistic about the year ahead,” Hoto said.
