HOSPITALITY firm, Rainbow Tourism Group (RTG) is considering acquiring Monomotapa Hotel as as part of its expansion strategy, businessdigest has learned.
On November 4, 2024, fellow hospitality company, African Sun Limited (ASL), announced plans to sell the 243-room, Monomotapa Hotel, located in Harare’s central business district.
ASL acquired the hotel through its full takeover of realtor Dawn Properties Limited during the half-year period ended June 30, 2022.
If RTG proceeds with the acquisition, it will expand its portfolio of CBD properties, which already includes the Rainbow Towers Hotel, Harare International Conference Centre, and Ambassador Hotel.
RTG’s expansion plans follow its recent acquisition of Briolette Services (Private) Limited, which trades as Montclair Hotel and Casino, for US$5,39 million. The transaction, first announced on November 22, 2024, has now been finalised.
ASL has been offloading non-core assets as part of its restructuring efforts.
Last month, the company sold the Great Zimbabwe Hotel and its associated business, located in Masvingo province, for US$4,2 million.
Regarding the Montclair Hotel acquisition, Madziwanyika confirmed that the process is in its final stages.
- Nakamba back from injury
- African Sun floats on ‘gain on bargain purchase’
- African Sun floats on ‘gain on bargain purchase’
- African Sun completes purchase of Dawn Properties
Keep Reading
Should RTG buy the Monomotapa Hotel, it would expand its CBD properties, which already include the Rainbow Towers Hotel and Harare International Conference Centre, and Ambassador Hotel.
RTG’s expansion plans come as on November 22, 2024, the hospitality firm revealed it had signed a sale and purchase agreement for the acquisition of the entire issued ordinary shares of Briolette Services (Private) Limited trading as Montclair Hotel and Casino for US$5,39 million, a deal now completed.
“Crown Plaza is a great product, well located, and look, we would not mind to actually look at it because if you look at the tourism product in Zimbabwe, it has not grown in the last so many years,” RTG chief executive officer Tendai Madziwanyika told businessdigest in an interview.
“There is going to be a real uptake of tourists going into the future. So, yes, if we were to get an opportunity, we would not mind actually taking a look at that one to see whether it can fit and if it’s a good deal.”
ASL is disposing of its non-core earning assets.
Last month, ASL disposed of its Great Zimbabwe Hotel and associated Hotel Business, located in the Masvingo province, for a gross consideration of US$4,2 million.
“We have just completed it in terms of the acquisition. We signed a purchase agreement with the shareholders. We are excited that we are buying that property from indigenous Zimbabweans,” Madziwanyika added.
“They have done a great job with the place, and we aim to do an even better job. So, the agreement of sale is done. The conditions precedent have now been completed. Now, we are just going through the modalities of making full payment for that acquisition, which we are buying for US$5 million.”
He said it was a piece of real estate in a previously unexplored area.
“It also grows our footprint into the eastern highlands part of Zimbabwe,” Madziwanyika said.
“You know, whenever we travel in the world, where we go for travel shows and so on, people are saying we want more than just the Victoria Falls. We want to experience Zimbabwe. And so that is exciting because, through HEXA (Heritage Expeditions Africa), our tour operation arm, we are able to now take people around the country.”
The group plans to spend US$15 million over the next five years in capex on its existing property portfolio.
This expenditure focuses on the maintenance of RTG’s hotels and refurbishing of the remaining ones.
“We are looking maybe around US$15 million or so because every year, we need to keep it up to speed.”
However, he reiterated that the focus going into the future would be on expansion.
