HOSPITALITY concern Rainbow Tourism Group (RTG) has expressed optimism on the resurgence of the hospitality sector in the second-half of the year which usually contributes around 60 percent of the total business led by conferencing and foreign leisure business, group chairman, Mr Douglas Hoto has said.
Mr Hoto said the focus will be on maintaining and enhancing profit margins through diligent cost management and the adoption of innovative business models.
“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 percent of the total business led by conferencing and foreign leisure business,” he said in the groups financials for the six months ended June 30, 2023.
The Group is steadfastly pursuing the expansion of its hotel portfolio leveraging its debt-free financial position.
During the period under review, the occupancy rate closed at 46 percent, marking a modest two percent decrease when compared to the 48 percent achieved in 2022.
However, Mr 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 the tech business, Gateway Stream.”
The Group’s inflation-adjusted revenues for the first-half of the year closed at $49,6 billion, a growth of 41 percent from the inflation adjusted $35,2 billion realised in 2022.
Mr Hoto said 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 percent, slightly lower than the 72 percent achieved in 2022.
The decline in gross profit margins is directly attributable to increased costs driven by inflation during the reporting period.
The Group’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) reached $3,5 billion, a 63 percent decrease when compared to the $9 billion EBITDA reported in 2022.
In the period under review, the hospitality group allocated $2,6 billion (equivalent to US$1,7 million) towards capital expenditure (CAPEX) during the reporting period.
“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 Rainbow Towers Hotel and Conference Centre including the prestigious presidential suite.”
Chronicle
