Marriott International has finalized its acquisition of South Africa-based Protea Hospitality Group.
09 Apr 2014 And from Ventures Africa, the report that Marriott International has finalised its one hundred and ninety one million dollar acquisition of South Africa-based Protea Hospitality Group. With the acquisition, Marriott International is now positioned as the largest hotel company in Africa.
As part of the agreement, Protea, which has a total of 116 properties across its three brands ,Protea Hotel Fire & Ice, African Pride Hotels and Protea Hotels in seven African countries will retain ownership of the hotels it currently owns and enter into long-term management and lease agreements with Marriott for these hotels.
We’re told that Marriott will now manage approximately 45 per cent of Protea’s rooms, franchise approximately 39 per cent of the rooms, and lease approximately 16 percent of the rooms. TheProtea portfolio will be fully integrated into Marriott booking portfolio by the end of May, this year.
Marriott will not be counting the dollars immediately though as the company has said that it does not expect the Protea acquisition to have a material effect on its 2014 earnings.