Beitbridge Hotel set to open in November

Business
NSSA will officially hand over its recently-completed $32 million Beitbridge Hotel to Rainbow Tourism Group (RTG) in November this year,

THE NATIONAL Social Security Authority (NSSA) will officially hand over its recently-completed $32 million Beitbridge Hotel to Rainbow Tourism Group (RTG) in November this year, Southern Eye Business has learnt.

Gamma Mudarikiri Own Correspondent

Construction of the three-star Beitbridge Hotel, situated a few kilometres from the Beitbridge border post, Zimbabwe’s busiest entry and exit point for the landlocked country, was completed last month.

An official speaking on condition of anonimity said NSSA excepted to officially hand-over the hotel on November 1, while the official public opening will be expected next year.

“Soft opening of the hotel would be done on the 1st of November and that is when NSSA will hand over the hotel to RTG,” the source said.

NSSA awarded a management contract of the hotel to RTG in July and also extended a $4,4 million loan to equip the hotel. The hotel was constructed at a cost of $32 million and has 140 rooms.

The loan would be paid over three years at an interest rate of 10% per annum. NSSA is the majority shareholder in RTG and this is the second time that the social security authority has injected capital in the group after $10 million was extended to the hospitality company last year at 10% interest over a five-year period.

The pension fund holds over 50% shareholding directly and indirectly through investment vehicles in the tourism group. RTG in the six months ended June, recorded a 4% growth in revenue to $13,2 million while occupancy rose 10% to 43%. This was in line with the year-end target at 50% occupancy rate.

In the period the hotel group reported a strong growth in earnings before interest, taxes, depreciation and amortisation (EBITDA) of 982% and as the group steps up effort to return to profitability.

The group generated cash resulting in an EBITDA of $1,644 million up from the $152 014 recorded in the same period in the previous year. RTG reported an operating profit of $880 000, an increase of 246% from last year.

The pre-tax line was at $29 049 while a tax credit of $182 473 saw the profit from continuing operation reaching $211 522 while the bottom-line was recorded at $104 587.

The bulk of the revenue came from city hotels at 78%, resorts at 16% while Mozambique constituted the remainder.  Twitter feedback @mudarikirig