RAINBOW TOURISM GROUP EXPANDS FOOTPRINT WITH MAJOR CAPE TOWN ACQUISITION

In a landmark move for the Zimbabwean hospitality giant, the Board of Directors of Rainbow Tourism Group (RTG) has announced its final steps in a strategic acquisition that will see the company enter the lucrative South African market. The company, through its South African subsidiary, Rainbow Tourism Group (SA) Proprietary Limited, has entered a Sale and Purchase Agreement to acquire a seven-storey commercial property in the heart of Cape Town.

The property, located at 13 Buitengracht Street, will be transformed from its current commercial use into a branded hotel following extensive adaptive reuse and refurbishment. This new hotel will be operated under a leading international hospitality group, signifying RTG’s commitment to high standards and a global presence. The total acquisition cost is ZAR98 million, or approximately US$5.6 million, representing a substantial investment equivalent to 9.3% of the company’s market capitalization on the Zimbabwe Stock Exchange (ZSE).

This acquisition is a key component of RTG’s long-term strategy to expand its hospitality portfolio into high-growth regional destinations. The company, a prominent player in Zimbabwe’s tourism sector, has a rich history and a strong portfolio of hotels across the country. Its well-known properties include the Rainbow Towers Hotel & Conference Centre in Harare, a landmark for business and conferences, and the Bulawayo Rainbow Hotel, a key fixture in the city of kings. The group also operates the Victoria Falls Rainbow Hotel, a popular choice for tourists visiting the world-famous falls, and the Kadoma Hotel and Conference Centre, which serves as a vital hub for corporate and leisure travellers outside the main cities.

The entry into the Cape Town market is strategically sound. Cape Town is one of the continent’s most attractive tourism and investment locations, celebrated for its consistent international arrivals, robust infrastructure, and its role as a key gateway to Southern Africa. This move allows RTG to diversify its geographical risk and tap into a major international travel hub, which is crucial for a company of its stature.

In compliance with the ZSE Listings Requirements, the transaction has been classified as a Category 3 transaction. This formal announcement, dated August 21, 2025, assures shareholders and the public that the acquisition is proceeding in accordance with all regulatory guidelines, setting the stage for RTG to become a more dominant force in the Southern African hospitality landscape.