Rainbow Tourism Group (RTG), one of the largest tourism and hospitality chains in Zimbabwe, plans to turn a $5.6 million property in Cape Town into a globally branded hotel, giving the company a foothold in South Africa and access to international reservation and loyalty networks as it seeks to expand beyond its home market.

The hospitality group will franchise the hotel under an international brand while retaining control of daily operations, Chief Executive Officer Tendai Madziwanyika said at RTG’s annual general meeting. The move would pair RTG’s local operating expertise with the reach and customer base of an established global hotel company.

From offices to hotel

RTG acquired the seven-story MSK House for R98 million ($5.6 million), at 13 Buitengracht Street in Cape Town’s central business district. The company did not buy an operating hotel. Instead, it plans to convert the commercial property through adaptive reuse and refurbishment into a hospitality destination.

The planned development will feature 126 rooms and 10 apartments, with RTG targeting April 1, 2027, for the project’s groundbreaking. About 20 specialists have already been deployed to work on the property as the Zimbabwean group prepares to transform the building into an internationally branded hotel.

Global brand, local operator

Madziwanyika declined to identify the prospective hotel partner, describing it as a highly regarded international brand operating across the four- and five-star segments. RTG will operate the property under a franchise arrangement, allowing it to retain management responsibilities while using the partner’s brand and commercial infrastructure.

The strategy reflects RTG’s effort to overcome a challenge common among African hotel operators: building international visibility beyond their home markets. The company expects the partnership to provide access to established reservation systems, marketing platforms and loyalty programs while RTG handles operations on the ground.

Betting on Africa expertise

International hotel groups are interested in Africa but can be cautious about taking on property and development risks, Madziwanyika said. RTG believes its experience operating hotels in the region gives it an advantage as global brands seek expansion opportunities without necessarily owning or managing the underlying real estate.

The Cape Town project is part of a wider acquisition and refurbishment strategy. RTG has also invested in Montclair Resort and acquired Batoka, a Victoria Falls-based tour operator, to support its investment in Heritage Expeditions Africa as the group builds businesses around Zimbabwe’s tourism and hospitality sector.

Building beyond Zimbabwe

RTG is one of Zimbabwe’s largest tourism and hospitality groups and is listed on the Zimbabwe Stock Exchange. The company operates six hotels across Zimbabwe, with properties in Harare, Kadoma, Bulawayo and Victoria Falls, while also maintaining a marketing and sales office in Johannesburg, South Africa.

Its portfolio includes two hotels in Harare, one in Kadoma, one in Bulawayo and two in Victoria Falls. RTG also operates the Harare International Conference Centre, Zimbabwe’s largest convention facility, with seating capacity of about 4,500, giving the group exposure to business travel and large-scale events.