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RTG Group increase Revenue with property upgrades

Like in any other business, in the hotel industry, guest satisfaction is a core factor that determines the success of a hotel business.

When a hotel brand attends to its guests with utmost care and sincerity, it really doesn’t have to put in extra effort on how to increase hotel revenue. Happy guests spread the good word about a property, they help hospitality brand strengthen its reputation and also come back to it for more, thus they help it to improve revenue in the long run.

Zimbabwe’s Rainbow Tourism Group (RTG), under an austerity and competitive environment, is one brand which has been proud to upgrade and modernize its hotel portfolio to help keep its corporate brand at the top of the list for the current and next generation of holidaymakers.

At a recent trading update, at the company’s annual general meeting, RTG chief executive Mr. Madziwanyika said that revenue grew by 131% to US$25, 6 million in the first five months of 2019 from US$11, 1 million over the same period last year, spurred by an increase in foreign currency business across all the company’s hotels.

The Hotel brand has owed it to its investment into its property upgrades and refurbishments. “A deliberate and persistent investment in the product, as well as service delivery systems, have been the cornerstone of this growth,” said Madziwanyika.

“A Gross Profit Margin (GPs) at 71% was achieved in the month of May 2019, representing a 6% growth from 67% recorded in 2018. The growth in GPs was driven by increased rooms and Food & Beverage profitability.” He added.

During the period under review, the company invested US$1.8 million in the Bulawayo Rainbow Hotel refurbishment.

“The scope of the works covered the overhaul of the hotel’s entire plumbing system – the first such comprehensive works since the hotel was built in 1952; the replacement of all critical in-room fixtures, the installation of aluminum single and double-glazed glare and sound reduction windows as well as the complete refurbishment of all the 181 bathrooms.” The hotelier said.

Bulawayo Rainbow Hotel

He added, “The second phase of this exercise will see the two guest elevators replaced with brand new, state of the art elevators by the end of July 2019.”

The Company aims to finish the refurbishment of the remaining 54 guest rooms at Kadoma Hotel & Conference Centre by 31 December 2019, “The focus is also on the product improvement of the flagship Rainbow Towers Hotel & Conference Centre with a target to complete 180 guest rooms by 2020,”

Madziwanyika said, in December 2019, one of RTG hotels, the New Ambassador Hotel, in Harare, will temporarily close for two months to make way for the refurbishment of all 72 bedrooms, replacement of the guest lift and the upgrade of all public areas.

Rainbow Tourism Group Limited (RTG) is a well-established tourism and hospitality Management Company in Zimbabwe, with an extensive portfolio of owner-managed or leased hotels and conference facilities in Zimbabwe and Mozambique, as well as a tour operator company. RTG operates in Zimbabwe and outside.

“Customer service is the foundation of our business delivery system. In this regard, the Company successfully completed the certification to the ZW ISO 9001: 2015 standard for all the six hotels plus the Rainbow Tourism Group Corporate Office.” Madzivanyika said.

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