Rainbow Tourism Group reported strong revenue growth for the financial year ending 2025, posting a 13 percent increase in revenue to $50.3 million despite operating in what the company described as a challenging economic environment.
The hospitality group said the growth was driven by innovation and the continued strength of its diversified portfolio, which includes hotels, conference facilities and tour operations.
Board chairperson Douglas Hoto said the performance came at a time when the market was facing liquidity challenges and reduced business from non-governmental organizations following cuts in donor funding.
The company also reported a significant increase in foreign currency earnings, which rose by 28 percent to $24.1 million, supported by increased international tourist arrivals in Victoria Falls and growing regional conference business.
Occupancy across the group’s properties improved to 57 percent, up from 54 percent the previous year, while the average daily room rate rose to $109. Revenue per available room increased by 13 percent, reflecting stronger demand across the portfolio.
During the year, Rainbow Tourism Group expanded its asset base through several strategic acquisitions, including Montclair Hotel and Casino in Nyanga, MSK House in Cape Town, South Africa, and Batoka Safaris, a Victoria Falls-based tour operating company.
The newly acquired businesses contributed about 8 percent of total group revenue during the period under review.
Total assets increased by 28 percent to $82.7 million, reflecting the group’s expansion strategy and investment in new properties and tourism operations.
However, earnings before interest, taxes, depreciation and amortization fell to $7.9 million from $9.7 million in the previous year, largely due to costs associated with the acquisitions.
The company said the costs were part of a long-term growth strategy and are expected to support stronger performance in future years.
Chief Executive Tendai Madziwanyika said the results demonstrate the strength of the group’s diversified business model and its ability to adapt to changing market conditions.
He said the company has focused on cost management and operational efficiency, including internal agricultural projects to supply fresh produce to its hotels, which helped reduce operating costs.
The group said increased international travel and conference activity, particularly in Victoria Falls, is expected to continue supporting growth, with management expressing optimism about the year ahead as demand for travel and hospitality services continues to recover.
Rainbow Tourism Group said its strategy going forward will focus on strengthening its hospitality portfolio, expanding tourism services and improving customer experience as it positions itself for continued growth in the regional tourism sector.
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