HOSPITALITY concern Rainbow Tourism Group (RTG) has launched a regional expansion drive targeting South Africa’s competitive hotel market — starting with a planned entry into Cape Town, businessdigest can reveal.
The company confirmed this week that it is actively pursuing acquisition and partnership opportunities in Cape Town as part of a broader strategy to diversify its asset base and revenue streams.
RTG’s cross-border pivot marks a significant departure from its historically domestic focus and signals growing investor appetite for high-return tourism assets in southern Africa.
This comes after the group purchased the Montclair Resort & Conference Hotel in Nyanga for US$5 million, with plans to potentially expand its property portfolio even further.
RTG remains bullish over its fortunes after it posted a positive net working capital position of US$3,4 million in its financial year ended December 31, 2024, owing to a growth in foreign currency revenue.
“We are also exploring opportunities beyond our borders, with a focus on Cape Town, one of Africa’s most sought-after tourist destinations,” RTG chief executive officer Tendai Madziwanyika told businessdigest in an interview.
RTG’s move comes as Africa’s tourism industry rebounded faster than expected post-Covid-19, with South Africa recording over six million tourist arrivals in 2024 — up 48% from the previous year.
Cape Town accounted for nearly 40% of those visits. For RTG, a successful entry into the Cape Town market would mark the first major regional expansion by a Zimbabwean hospitality brand in over a decade — and one that positions it to challenge larger regional and global players.
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“We recently acquired the Montclair Hotel and Casino, in the Eastern Highlands, which we are rebranding to Montclair Resort & Conference Hotel. Included in this deal are 24 apartments in the Nyanga town centre,” the RTG boss said.
“We will also be putting up a tented facility targeted at schools and groups. In line with the RTG brand ethos of refreshing guest experiences, we are excited to announce that we will be refurbishing the hotel in the months of June and July 2025.
“There is an opportunity to scale up and expand the resort from a rooms and conferencing capacity perspective. We will be making an announcement soon on an acquisition in Harare. This acquisition will be significant in consolidating our presence in urban areas.”
In March, Madziwanyika told businessdigest the group was looking to the Monomotapa Hotel as its next possible purchase as the firm seeks to expand.
The hotel’s current owners, African Sun Limited, set June 30 for finalising the sale of the iconic property located in Harare's central business district.
African Sun’s financial statements for the year ended December 31, 2024, placed the value of the Monomotapa Hotel at nearly US$15 million.
“By the end of the year, we will have come to market with more acquisitions in the country,” Madziwanyika said.
“This aims to robust our Heritage Expeditions Africa (HExA) that aims to take people to various tourist attractions around the country so that people can enjoy the many endowments of our wonderful flora and fauna.”
The company’s portfolio upgrade feeds directly into its HExA brand, which curates travel experiences across Zimbabwe and aims to connect guests with national heritage sites, natural wonders, and local communities.
