RTG Posts Revenue Surge Despite Economic Pressures

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.

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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.

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