Rainbow Tourism Group Secures Landmark ZAR98 Million Acquisition in Cape Town

Rainbow Tourism Group Limited (RTG) has announced a bold step in its regional expansion strategy with a landmark acquisition in Cape Town, South Africa. Through its South African-registered subsidiary, Rainbow Tourism Group (SA) Proprietary Limited, the hospitality giant has entered into a Sale and Purchase Agreement with Elleke Hospitality Proprietary Limited for the purchase of a seven-storey commercial property located at Erf 807, 13 Buitengracht Street, in the heart of Cape Town. 

The deal, valued at ZAR98 million (approximately US$5.6 million) is equivalent to about 9.3% of RTG’s current market capitalization on the Zimbabwe Stock Exchange (ZSE). This signals the Group’s entry into one of Africa’s most competitive tourism markets. 

The property, currently a commercial asset, is set for adaptive reuse and refurbishment, with plans underway to transform it into a branded hotel operated under a leading international hospitality group. For RTG, the move is more than an acquisition; it is a strategic milestone that aligns with its long-term vision of expanding its footprint into high-growth regional destinations. 

Cape Town, renowned for its world-class infrastructure, consistent international arrivals, and role as a gateway city to Southern Africa, offers the perfect springboard for this ambition. In line with the ZSE Listings Requirements, specifically the Securities Exchange Rules Statutory Instrument 134 of 2019, the transaction qualifies as a Category 3 transaction under Section 253, paragraph 3, and this announcement is made pursuant to Section 258 of the Listings Rules.

RTG is one of Zimbabwe’s leading tourism and hospitality companies. Listed on the ZSE, RTG is a dominant player in thehospitality sector. RTG has expanded its presence across the tourism value chain through key initiatives such as the launch of Heritage Expeditions Africa, its domestic tour operations subsidiary and the development of Gateway Stream – a proprietary superapp offering an integrated digital marketplace for products, services, and travel experiences. To support foreign arrivals into itslocal hotels, RTG also maintains a dedicated sales and marketing office in Johannesburg, South Africa.

The table below lists RTG’s current hotels and conferencing portfolio:

Information About the Asset Under Acquisition

The property is a seven-storey commercial building comprising a ground-floor retail unit measuring approximately 221m² and six upper floors of office space totaling 3,600m². The property enjoys a prime location along a major arterial route leading into CapeTown’s Central Business District (CBD), offering high visibility and pedestrian traffic, as well as close proximity to key business and leisure landmarks — including the V&A Waterfront, Cape Town International Convention Centre (CTICC), the DHL Cape Town Stadium and the Bo-Kaap tourist district. It also offers unobstructed views of the iconic Table Mountain, one of the most recognizable natural landmarks in the world. 

This premium location positions the property as an ideal candidate for conversion into a hotel development that caters to bothcorporate and leisure travelers. Its proximity to the CTICC enhances its suitability for the Meetings, Incentives, Conferences, and Exhibitions (MICE) segment, while the surrounding cultural, culinary, and recreational attractions boost its appeal to domestic and international tourists alike. Strategically located near Cape Town’s financial district, Bree Street’s vibrant dining scene, andthe city’s renowned beaches, the property represents a high-potential anchor asset for RTG’s regional expansion strategy into South Africa’s dynamic hospitality market.

Strategic Implication of The Acquisition

This strategic investment is aligned with the Board’s overarching mandate to identify and pursue growth opportunities thatsupport the Group’s long-term vision of expansion. It marks a significant milestone in RTG’s regional growth strategy and affirms the Company’s commitment to unlocking long-term shareholder value.

Currently, RTG’s asset base and operations are entirely concentrated in Zimbabwe. This acquisition presents an opportunity to diversify both the Group’s balance sheet and revenue streams by establishing a presence in one of Africa’s most vibrant andcompetitive tourism markets. Cape Town, a globally acclaimed destination and a key hospitality hub, offers strong market fundamentals, including high occupancy rates, well-developed infrastructure, and year-round international visitor appeal. Establishing a footprint in this environment not only enhances the Group’s regional and global profile but also provides directaccess to global best practices in hospitality operations, customer experience, and service excellence.

To ensure world-class delivery, the Company is presently in advanced discussions with reputable international hotel brands to secure a management agreement for the acquired property. Partnering with a global operator is expected to drive international skills transfer, operational efficiency, and increased visibility of the RTG brand on the global stage. This collaboration will alsosupport talent development and skills capacitation within the Group and contribute positively to Zimbabwe’s hospitality talent ecosystem.

In addition to its strategic and operational value, the investment is anticipated to be a strong source of foreign currency generation, contributing positively to both RTG’s financial performance and the broader Zimbabwean economy. This development will enhance RTG’s earnings potential, reinforce long-term shareholder value, and position the Group for sustained growth within the Southern African region.

The building earmarked for acquisition will be converted and redeveloped into a modern, fully operational hotel consistent with international hospitality standards. The redevelopment will be guided by the specifications and brand standards of the selectedglobal hotel partner, ensuring that the final product meets world-class benchmarks in design, guest experience, and servicedelivery. Once complete, the hotel will stand as a competitive and high-impact asset within Cape Town’s hospitality landscape, reinforcing RTG’s commitment to delivering exceptional and refreshing experiences across its expanding portfolio.