Rainbow Tourism Group Limited delivered its strongest first-half performance in recent history during the six months ended 30 June 2026, recording broad-based growth across its hotel, conferencing, food and beverage, outside catering and tourism operations.
Group revenue increased by 29% to US$26.8 million, compared with US$20.8 million in the corresponding period in 2025. Earnings before interest, tax, depreciation and amortisation more than doubled, rising by 125% from US$2.4 million to US$5.4 million.
The EBITDA margin consequently expanded from 11% to 20%, demonstrating that the Group converted a greater proportion of its revenue growth into operating earnings.
Profit before tax increased fourfold to US$3.5 million, while the Group’s gross profit margin improved from 68% to 75%. The performance represents a significant step-change in RTG’s earnings trajectory and reflects the combined impact of stronger demand, improved revenue quality, effective yielding and disciplined cost management.
The growth was not concentrated in a single operation. All RTG business units recorded higher occupancy than in the comparative period, highlighting the strength and resilience of the Group’s diversified operating model.
Room occupancy increased to 55%, while revenue per available room rose by 33% to US$65. The improvement in RevPAR was driven not only by higher room volumes but also by more effective revenue management across the Group’s portfolio.
RTG focused on improving the quality of its revenue by directing demand towards higher-specification and better-yielding accommodation categories, including suites, king rooms and other premium room types.
This enabled the Group to achieve stronger average daily rates while continuing to protect occupancy.
The results also benefited from increasing foreign arrivals and improved regional business. Foreign currency revenue grew by 18% to US$11.6 million, supported by the continued recovery of international tourism, regional conferencing, non-governmental organisation activity and increased demand for Victoria Falls.
RTG’s Victoria Falls properties recorded a particularly strong recovery, with occupancy increasing from 54% to 65%.
This was achieved despite temporary room disruptions arising from refurbishment work at A’Zambezi River Lodge, demonstrating the underlying strength of demand for the destination and the effectiveness of the Group’s commercial strategy.
Conferencing remained another important growth engine. The Group’s conferencing business increased by approximately 22%, supported by government, corporate and regional meetings, conferences, events and banqueting activity.
Rainbow Towers Hotel and Conference Centre remained central to this performance and accounted for a significant proportion of the growth in the city hotels portfolio.
City hotels recorded a 29% increase in revenue, with all properties performing ahead of the prior year. Improved conference activity, stronger food and beverage sales and higher utilisation of the Group’s event and banqueting infrastructure contributed to the growth.
The Group’s food and beverage business increased by 33%, benefiting from stronger hotel trading and the growing scale of RTG Mobile, the Group’s outside catering platform. RTG Mobile has extended the Group’s hospitality expertise beyond its physical hotel properties, allowing RTG to serve corporate functions, conferences, weddings, government events and other occasions at external venues.
RTG has also introduced an event planner collaboration programme aimed at supporting smaller players in the events industry.
Through the programme, the Group positions itself as an extension of event planners, providing access to catering, venues, accommodation, technical expertise and operational support without displacing the planners’ relationships with their clients.
Cost management was equally important to the record performance. RTG implemented procurement innovations, operational efficiencies and structured cost-reduction initiatives across the business.
The RTG Agro “Garden-to-Plate” initiative made a growing contribution to lower food production costs by supplying hotels with selected vegetables, herbs and other fresh produce.
The initiative reduced reliance on external suppliers, improved freshness and helped lower food and beverage cost of sales.
Heritage Expeditions Africa also benefited from improved yielding and tighter cost management.
The business recorded growth in tourism and transfer revenues, while management focused on improving room and package profitability during the traditionally softer first-half tourism season.
The Gateway Stream business continued to support the Group’s wider digital and commercial ecosystem, contributing to improved customer access, distribution and service integration.
RTG enters the second half of 2026 with positive momentum.
The second half traditionally contributes 60% of annual revenue and is expected to benefit from stronger international arrivals into Victoria Falls, sustained conferencing activity, completed refurbishments and the expanded Montclair Resort and Conference product.
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