Leading hotelier, Rainbow Tourism Group (RTG) has forked out a staggering US$4.4 million to refurbish its star hotel, Rainbow Towers to meet world class standards.
Presenting the group’s performance for the full year ended December 31 2020, RTG chairperson, Arthur Manase said the group undertook the refurbishment of Rainbow Towers Hotel in Harare during the first quarter of 2020.
The project was completed within three months and was the hotel’s first full room refurbishment since its construction in 1985.
“The scope of works included plumbing, electrical, ceiling works, new bathrooms, installation of two brand new guest elevators and new in-room furniture and fittings at a total project cost of an equivalent of US$4.4 million. The hotel now offers world-leading rooms that can compete with other comparable 5-star facilities,” he said.
To date, the hotel group has spent US$6.2 million in refurbishing its hotels across Zimbabwe inside a 12-month period.
Similar works have been undertaken at the Bulawayo Rainbow Hotel with work involving upgrading of bathrooms, full replacement of the hot and cold water reticulation systems, replacement of exterior windows, upgrade of soft furnishings in rooms and the replacement of guest elevators.
The project has in turn created downstream opportunities for building material suppliers and scores of job seekers in the construction sector.
Meanwhile, during the period under review, occupancy for the year under review closed at 26% compared to 47% recorded in 2019.
The group posted revenues of $1.1 billion, 66% below $3.2 billion posted in 2019 while gross margins closed at 71%, slightly lower than 73% posted in 2019.
With the closure of the two hotels in Victoria Falls for the greater part of 20202, the group’s performance was mainly sustained by its city facilities.
“The group enjoys a superior location advantage as 80% of its rooms stock sit on the commercial trunk of the country – the Harare Bulawayo trunk, with optimum dispersion. As a result, the group benefited from the residual economic activity during the hospitality slowdown in 2020,” added Manase.