LEADING hospitality concern Rainbow Tourism Group (RTG) has entered into an agreement to acquire Montclair Hotel for US$5 million.
The latest details on the transaction were revealed by the RTG company secretary, Tapiwa Mari Monday in a giant step which is set to see RTG scaling up to greater heights.
"The Board of Directors of RTG wishes to advise shareholders and the investing public that the Company has signed a sale and purchase agreement for the acquisition of the entire issued ordinary shares of Briolette Services (Private) Limited trading as Montclair Hotel and Casino, for a purchase consideration of US$5 million," said.
He said the conclusion of the transaction is subject to the fulfilment of various conditions precedent and the RTG is now engaged in the necessary processes to finalise and execute the Sale and Purchase agreement including satisfying all conditions precedent.
"If successfully concluded, the transaction may have a material effect on the price of the Company's securities. Therefore, shareholders are advised to exercise caution and to consult their professional advisors when dealing in the Company's securities," said Mari.
The Montclair was built as a getaway resort for families in the capital and the surrounding farming communities in 1949 by Mr. J.R.A Smith. He named the completed sixty-four bed-roomed house Dannakay Catering Lodge after his two daughters Danna and Kay. The Dannakay was later renamed the Nyanga Mountain Hotel.
In the early 1960s,the hotel was renamed Montclair Mountains Hotel.
In 1970, Mr. and Mrs. Lound bought the hotel and called it Montclair Hotel. This duo did not operate for long before selling the establishment to Lonrho who changed the hotel to Montclair after Mr. Lound's faithful dog.
During the years from 1980 to 1987, the rooms changed in number from 64 to 85 and it was during this time that the staff cottages were built, More so, Mr. Landay Ferreira and Mr. Benata bought the hotel and leased it to Grinaker.
Since then, the hotel has grown from strength to strength with market analysts indicating that the oncoming RTG will spur the unit to dizzy heights.
