Rainbow Tourism Group is expanding its renewable energy program with plans to install a 2-megawatt solar power system at the Rainbow Towers Hotel and Conference Centre, part of a broader sustainability strategy aimed at reducing energy costs and environmental impact.

The hospitality group said the new solar installation, scheduled for implementation in 2026, will be grid-tied, allowing excess electricity generated by the system to be fed into the national grid.

The project is expected to produce nearly 3 million kilowatt-hours of clean energy annually, contributing both to the company’s energy needs and the country’s broader energy resilience efforts.

The investment follows the successful rollout of a solar plant at Kadoma Hotel and Conference Centre, which generated more than 270,000 kilowatt-hours of clean energy over the past year and helped reduce the company’s energy costs by 31 percent.

Rainbow Tourism Group board chairperson Douglas Hoto said sustainability remains central to the company’s long-term strategy, with environmental, social and governance principles integrated across operations and capital investments.

The company has also introduced resource efficiency measures across its properties, including low-flow water systems to reduce water consumption and smart key card energy systems to optimize electricity usage in guest rooms.

The group’s sustainability strategy also includes employee and community initiatives.

During the year, the company’s Employer Assisted Housing Scheme benefited more than half of its employees, while community development programs received funding to support health institutions and orphanages across Zimbabwe.

The renewable energy investment comes during a period of strong financial performance for the hospitality group.

Rainbow Tourism Group reported a 13 percent increase in revenue to $50.3 million for the 2025 financial year, supported by growth in tourism, conferencing and its diversified hospitality portfolio.

The group’s total assets increased by 28 percent to $82.7 million following strategic acquisitions, including Montclair Hotel and Casino in Nyanga, MSK House in Cape Town and Batoka Safaris in Victoria Falls.

Chief Executive Tendai Madziwanyika said the company’s focus on renewable energy is both an environmental and business decision, aimed at reducing its carbon footprint while improving operational efficiency.

He said the company’s solar projects and resource efficiency initiatives are part of a broader plan to make sustainability a practical part of everyday operations across the group’s properties.

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.