RAINBOW Tourism Group (RTG) allocated ZWL$2,6 billion towards capital expenditure (CapEx) in the first half of the financial year 2023, as it expanded its hotel portfolio.
In a statement accompanying financial results for the six month ended June 30, 2023, RTG chairperson Douglas Hoto said the primary focus of CapEx investment was on the enhancement of essential areas within all hotels.
“The primary focus of our CapEx investment was directed towards the enhancement of essential areas within all our hotels. Notably, this encompassed the completion of a comprehensive upgrade of the suites at the hotel and Conference Centre, including the prestigious presidential suite,” Hoto said.
The RTG chairperson said this strategic investment underscored the group’s commitment to improving its facilities and services, with the overarching goal of elevating the overall guest experience to world class status.
Such targeted improvements, he said, seamlessly aligned with the group’s long-term growth objectives, as “we continue to position ourselves as leaders in the hospitality industry”.
“The group holds an optimistic outlook regarding the resurgence of the industry in the second half of the year. The last half of the year usually contributes around 60% of the total business led by conferencing and foreign leisure business,” he said.
“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 on synergies with our valued business partners and nurturing a motivated workforce to establish enduring value to our shareholders.
“The group is steadfastly pursuing the expansion of its hotel portfolio leveraging on its debt-free financial position.”
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During the period under review, the occupancy rate closed at 46%, marking a modest 4% decrease compared to the 48% achieved in 2022.
Nevertheless, Hoto said 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 tech business Gateway Stream.
The group’s inflation-adjusted revenues for the period closed at ZWL$49,6 billion, a growth of 41% from the comparable period.
“The growth in revenues demonstrates the group’s agility in the face of a difficult operating environment. Gross margins for the review period stood at 65%, slightly lower than the 72% achieved in 2022,” Hoto noted.
“This decline in gross profit margins is directly attributable to increased costs as driven by inflation during the reporting period.”
The group’s earnings before interest, tax, depreciation, and amortisation reached ZWL$3,5 billion, a 63% decrease when compared to the same period last year.
