WORLD – Marriott International expects to become the largest hotel company in Africa, following the signing of a letter of intent with Protea Hospitality Holdings of Cape Town, South Africa, to acquire Protea Hotels’ brands and its management business.
Protea operates or franchises 116 hotels across three brands with 10,184 rooms in South Africa and six other Sub-Saharan African countries.
The transaction would nearly double Marriott’s distribution in Africa to more than 23,000 rooms.
In addition to its 80 hotels in South Africa, Protea Hotels has a significant presence in Malawi, Namibia, Nigeria, Tanzania, Uganda and Zambia.
As part of the transaction, Protea Hospitality Holdings intends to create a property ownership company to retain ownership of the hotels it currently owns (and enter into long-term management and lease agreements with Marriott for these hotels).
Arne Sorenson, President and Chief Executive Officer of Marriott International, said: “Africa has significant untapped potential for travel, both as a destination and source of new global travellers. The continent’s GDP is anticipated to grow at over five per cent annually over the next few years. Our expanded footprint should allow us to become the first choice of Africa’s rapidly growing population of young, sophisticated travellers, and drive loyalty to our Marriott Rewards programme both within Africa and globally.
“Protea Hotels enjoys unparalleled brand recognition in Africa, and our combined portfolio of Protea Hotels and current Marriott International brands would create a platform for accelerated growth and new job growth in South Africa and across the continent.”
Alex Kyriakidis, President of Marriott International for the Middle East and Africa, said: “The development cycle for opening new hotels in Africa is typically long due to the challenges posed by emerging infrastructure, so joining forces with Protea Hotels and their highly respected management team is the strongest way to jumpstart Marriott’s footprint in Africa.”
The transaction is subject to completion of due diligence, negotiation and execution of definitive documents, receipt of customary third party and governmental consents.
The terms of the transaction have not been disclosed but both parties say they are hopeful the transaction could close in the first three months of 2014.
Do you have news for CMW? Email: pcolston@mashmedia.net
