shloboe boe
Nqobile Bhebhe, [email protected]
RAINBOW Tourism Group (RTG) says the move to secure the US$5 million acquisition of Montclair Hotel and Casino (Private) Limited in Nyanga is strategic to the business and aligns with its five-year plan and growth objectives.
By leveraging Montclair’s prime location, RTG seeks to strengthen its competitive position, capitalise on rising demand in the region, and drive long-term value creation.
In November, the hospitality group announced its plans to acquire Montclair, and has signed a sale and purchase agreement for all ordinary shares of Briolette Services (Private) Limited, which operates the Montclair Hotel and Casino.
Company secretary, Mr Tapiwa Mari, said the investment is supported by a robust business case, with clear potential for revenue growth through increased market penetration and expansion of conferencing and hospitality offerings.
“The acquisition of Montclair is a strategic move that aligns with RTG’s five-year strategy and growth objectives, enabling RTG to enhance its footprint in the Eastern Highlands, a key tourism and business destination in Zimbabwe,” he said.
“By leveraging Montclair’s prime location, RTG will strengthen its competitive position, capitalise on rising demand in the region, and drive long-term value creation.”
Mr Mari said the Montclair asset will also benefit significantly from the synergies created by becoming part of RTG.
“Leveraging RTG’s well-established brand equity, the hotel will deliver a seamless, high-quality experience to clients across the group’s portfolio of resorts and business facilities,” he said.
“This consistency will help strengthen customer loyalty and attract new clientele, enhancing Montclair’s competitive edge in the market.”
The group’s robust marketing and distribution network will further elevate Montclair’s visibility, driving increased occupancy and revenue.
Montclair also stands to gain access to RTG’s operational expertise, achieving significant economies of scale in key business functions.
The purchase price will be paid through a loan facility from the National Building Society (NBS) and will be payable upon fulfilment of all conditions precedent. The transaction needs the Competition and Tariff Commission’s approval.
“The remaining condition precedent is the pending application for approval of the transaction from Competition and Tariff Commission of Zimbabwe,” he said.
RTG is a leading player in the Tourism and Hospitality industry in Zimbabwe offering three distinct quality hotel brands, Rainbow Towers Hotel and Conference Centre, A ‘Zambezi River Lodge and the 3-star Rainbow Hotels (Bulawayo Rainbow Hotel, Kadoma Hotel & Conference Centre and New Ambassador Hotel).
The company has expanded its business scope beyond hotels with the launch of its local tour operations subsidiary, Heritage Expeditions Africa and its digital platform, the country’s only super-app, the Gateway Stream, which is a one-stop online marketplace that offers a diverse range of products, services and experiences.
In its portfolio, RTG has six hotels, 878 rooms and a conference capacity of 8010.
On the other hand, Briolette is a company wholly owned by a consortium of 23 shareholders.
Briolette owns the Montclair Hotel and Casino, which is the main subject of the RTG transaction. It acquired Montclair in 1997 and the hotel is a 3-star conference and leisure venue in the Eastern Highlands.
The transaction is expected to significantly enhance RTG’s overall performance and strengthen its market presence by extending its geographical footprint and growth potential.
Montclair has a room capacity of 85 and a portion of land surrounding the hotel comprising approximately 24 hectares of land.
“This will be subject to the subdivision of the 87,2265 hectares, with RTG taking ownership of approximately 24 hectares leaving approximately 63 hectares outside the company and in the hands of the current shareholders,” said Mr Mari.
