Rainbow Tourism Group Limited, RTG, has reported its strongest first-half performance in the company’s history, with revenue, profitability and occupancy all posting double-digit growth for the six months ended 30 June 2026.
In its unaudited abridged consolidated financial statements released this week, the hospitality group said revenue grew by 29% to US$26.8 million from US$20.8 million in the same period last year. Earnings Before Interest, Tax, Depreciation and Amortisation more than doubled, rising by 122% to US$5.4 million, while profit before tax jumped 326% to US$3.5 million. Profit after tax increased 260% to US$3.7 million. Basic earnings per share rose to 0.147 US cents from 0.040 US cents.
The company said the results confirmed that strategic decisions taken in recent years were now delivering tangible returns. The Group delivered the strongest first-half performance in its history.
The improved performance was underpinned by stronger trading across all business units. Group occupancy rose by 12 percentage points to 55% from 49%, while Revenue Per Available Room, RevPAR, increased 23% to US$65. Room revenue benefited from improved yield management and higher premium room sales, while food and beverage revenue grew 33%, supported by the Group’s “RTG Mobile” outside catering initiative launched in 2024. Foreign currency revenue grew 18% to US$11.6 million, driven largely by a 20% jump in occupancy at the Victoria Falls resort hotels to 65% and by growth in regional conferencing.
Conferencing revenue across the portfolio rose 22%, with government, corporate meetings and banqueting cited as the main drivers. City hotels recorded revenue growth of 29%, with the flagship Rainbow Towers Hotel and Conference Centre contributing 60% of that increase. New Ambassador Hotel also stood out following its 2025 refurbishment, with occupancy up to 63% and revenue up 178%.On the cost side, gross profit margin improved to 75% from 68%, supported by procurement innovations and the “RTG Agro” in-house farming programme, which is reducing reliance on external suppliers for fresh produce. The EBITDA margin widened to 20% from 11% a year earlier.RTG’s balance sheet also strengthened. Total assets grew 5% to US$87 million, while equity increased 6% to US$41.1 million. Gearing fell to 22% from 24% at year-end 2025, and borrowings reduced to US$11.5 million. The current ratio improved to 0.86. The Group spent US$1.7 million on refurbishments during the period, all funded from internal cash flows.
The resort segment led by the two Victoria Falls properties delivered a strong recovery despite temporary disruption from refurbishments at A’Zambezi River Lodge. In the Eastern Highlands, the newly acquired Montclair Resort and Conference Centre is undergoing refurbishment, with completion due at the end of July 2026, expanding room stock from 85 to 110 rooms. In tour operations, Heritage Expeditions Africa grew revenue by 7%, with stronger performance expected in the second half as international arrivals peak.
RTG declared an interim dividend of US$1.25 million, up 14% from last year. This will be paid as US$650,000 in US dollars and the equivalent of US$600,000 in ZiG. The interim dividend per share is 0.0264 US cents and 0.63 ZiG cents.
Looking ahead, the company expects continued momentum, supported by the completion of refurbishments, expanded regional marketing and growing international arrivals into Victoria Falls. Preparatory work is also progressing on the redevelopment of MSK House in Cape Town into an internationally branded four-star hotel, with construction expected to start in the second half of 2027.
The company also highlighted its sustainability initiatives. Through RTG Agro and smart energy and water systems at Montclair, the company said it was advancing its circular economy approach and contributing to SDGs on Zero Hunger, Clean Water, Responsible Consumption and Climate Action.
Chairman, Douglas Hoto thanked guests, partners, government and staff for their support, adding that the Board remained committed to disciplined growth and long-term shareholder value.
RTG trades as “Refreshing Hotels, Amazing Experiences” and operates hotels, conferencing, restaurants, adventure and e-commerce businesses across Zimbabwe and the region.
