Zimbabwean group invests R100m in property for hotel

ZIMBABWE-listed hotelier, Rainbow Tourism Group (RTG), is expanding into South Africa with a $5.6 million (nearly R100 million) acquisition of a Cape Town commercial property it intends turning into a prime hotel.

- TAWANDA KAROMBO

RTG, which runs city and resort hotels in Zimbabwe, said it was in the process of finalising the acquisition through its South African-registered subsidiary, RTG SA.

RTG SA has entered into a sale and purchase agreement with Elleke Hospitality for the acquisition.

Under the agreement, RTG will acquire the seven-storey commercial property located along Buitengracht Street in Cape Town.

“The property, which is currently a commercial asset, will undergo adaptive reuse and refurbishment to transform it into a branded hotel operated under a leading international hospitality group,” said Tapiwa Mari, RTG company secretary.

“The total consideration for the acquisition is roughly 9.3% of the company’s market capitalisation on the Zimbabwe Stock Exchange (ZSE).”