Marriott finalises purchase of Protea Hotels
Group becomes the largest hotel company in the Middle East and Africa
Marriott International has announced that it has signed definitive agreements for the purchase of South Africa’s Protea Hospitality Holdings’ three hotel brands and management company.
Under the terms of the agreements, Marriott will pay approximately 2.02 billion rand (US $186 million) for Protea’s 116 hotels with 10,148 rooms in seven African countries including South Africa.
The deal will now make Marriott the largest hotel company in the Middle East & Africa region, nearly doubling its distribution there to more than 23,000 rooms.
As part of the transaction, Protea Hospitality Holdings will create a property ownership company to retain ownership of the hotels it currently owns, entering into long-term management and lease agreements with Marriott for those hotels.
The property ownership company will also retain a number of minority interests in other Protea-managed hotels. At closing Marriott will manage approximately 45 percent of the rooms, franchise approximately 39 percent of the rooms, and lease approximately 16 percent of the rooms.