HOSPITALITY group, Rainbow Tourism Group Limited (RTG) has agreed a del to acquire Montclair Hotel and Casino in Nyanga for US$5 million, which would see it establishing its footprint in the Eastern Highlands.
In its half year financial report for the period ended June 30, 2024, RTG revealed that its strategic focus will be on protecting and enhancing profit margins.
This will be done through diligent cost management and the adoption of innovative business models.
Currently, the group has properties in Kadoma, Bulawayo, Victoria Falls and Harare.
“The Board of Directors of Rainbow Tourism Group Limited wishes to advise shareholders and the investing public that the company has 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 (the transaction), for a purchase consideration of US$5 million,” RTG said in a statement on Monday.
“The conclusion of the transaction is subject to fulfilment of various conditions precedent. The company is now engaged in the necessary processes to finalise and execute the sale and purchase agreement, including satisfying all conditions precedent.”
Briolette Services (Private) Limited (Briolette), a consortium of indigenous businessmen, bought the Montclair Hotel and Casino Private Limited in 1997 and has been running it ever since.
Rainbow revealed that if the deal is successfully concluded, the transaction could affect its listed securities valued at US$64,03 million as of last Friday.
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“Therefore, shareholders are advised to exercise caution and to consult their professional advisors when dealing in the company’s securities,” Rainbow said.
As of June, Rainbow’s total assets were US$54,88 million.
“The Montclair was built as a getaway resort for families in the capital and the surrounding farming communities in 1949 by Mr. J.R.A Smith. He named the completed sixty-four bed-roomed house Dannakay catering lodge after his two daughters Danna and Kay,” reads the Montclair Hotel and Casino About page on its website.
“The Dannakay was later renamed the Nyanga Mountain Hotel. In the early 1960s the hotel was renamed Montclair Mountains Hotel. During the year 1970 Mr. and Mrs. Lound bought the hotel and called it Montclair Hotel. This duo did not operate for long before selling the establishment to Lonrho who changed the hotel to Montclair after Mr. Lound‘s faithful dog.”
During the years 1980 to 1987, the number of rooms grew from 64 to 85, while staff cottages were built in the same period.
“Owing to the strong financial background of Rennies Granken’s Montclair developed along different facets during this time, the Casino was built, a state-of-the-art sewerage disposal system was built, the group also constructed the beverages cellar, extended the maintenance workshop and furthermore it increased the storeroom area.”
In 1987, the Zimbabwe Sun Hotels took over the management of the hotel and renamed it Montclair Casino Hotel.
“The service provision from the casino was exceptional, and this resulted in the hotel gaining an additional star to its rating from three to four stars.”
That was when Briolette bought the facility.
