HARARE – Zimbabwe Stock Exchange-listed hotel group, Rainbow Tourism Group (RTG), has closed its loss-making Beitbridge Hotel due to unsustainable operational costs.
The hotelier yesterday said market factors characterised by depressed occupancies, low margins as well as high operating costs had greatly contributed to the decision to wind operations at the hotel, with the termination taking effect on May 31.
“Operational costs of the hotel were no longer sustainable. Since opening in January 2014, the hotel has incurred losses amounting to more than $2 million,” RTG said.
The listed hotel group said its Beitbridge unit’s poor performance had continued to weigh down overall group performance, leading to the board’s decision to axe the unit.
“The business decision was reached following much consultation…
“The latest projections show a declining market demand and rate yield with strong indications that the hotel will continue to make losses into the foreseeable future,” RTG said.
The affected employees would be assimilated into its six hotels around the country with offers of alternative employment, the group said.
This comes as another hotel group, African Sun Limited, also closed its unit in the border town, Beitbridge Express Hotel, to focus on other profitable ventures in January this year.