Rainbow Tourism Group closed its Beitbridge Rainbow Hotel in Zimbabwe at the end of May, citing unsustainable operational costs and low occupancies.

Group Corporate Communications and Innovations Manager, Pride Khumbula, confirmed the closure. In a statement, the RTG Board of Directors said the business decision was reached following wide consultation.

“Market factors characterised by depressed occupancies, low margins as well as high operating costs were the major contributing factors in exiting Beitbridge,” said the board of directors.

The Group said since the hotel’s inception in January 2014, it had incurred losses amounting to more than $2 million.

“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,” said RTG, adding that the poor performance had continued to weigh down the overall group performance.

RTG operates six hotels in Zimbabwe.

The Group said measures had been put in place to ensure a seamless transition for customers, suppliers and service providers.

African Sun closed its Holiday Inn Beitbridge Express Hotel in February. African Sun cited prolonged loss-making by the facility.

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