rtg logo.jpgRainbow Tourism Group (RTG) is close to concluding its disposal of non-profit making units, an exercise which is expected to raise just over US$2 million.

The disposal of non-core assets which was embarked on early this year and is aimed at restoring profitability is expected to be concluded before the end of this year.

 

In an interview with ZBC News, RTG Group Chief Executive, Mrs. Chipo Mutasa, said the executive decision will see the group off-loading some of its safari lodges and concentrate on the hotel business.

An independent advisor has been identified to implement the disposal of non-core assets estimated to raise just over US$2 million.

 

The amount to be raised will go towards retirement of the expensive short-term debt.

After the completion this year of A’Zambezi project, the group is optimistic of meeting its 2012 deadline for the completion of Rainbow Towers Hotel, Bulawayo Rainbow Hotel and the Beitbridge Hotel project to which some funds from the recapitalisation are also earmarked for these projects.

The Group’s financial performance for the first half of the year shows a 29% growth in turnover while hotel occupancy stood at 41%.

 

However, the balance sheet was burdened by short-term debts and interest charges. As part of its long term strategy, the group seeks to reduce short-term debt through recapitalisation which was approved by the board.