MARRIOT International
and Protea Hospitality
Holdings have signed
definitive agreements for
the purchase by Marriott of
Protea’s three brands and
management company.
Under terms of the
agreements, Marriott will
pay approximately R2,02bn,
subject to normal closing
adjustments.
Protea has 116 hotels
with 10 148 rooms in seven
African countries including
South Africa. At closing,
Marriott will become the
largest hotel company in
the Middle East and 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 such 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% of the rooms, franchise
approximately 39% of
the rooms, and lease
approximately 16% of the
rooms.
Marriott and Protea plan
to close the transaction on
April 1. The transaction is
subject to receipt of certain
third-party and governmental
consents.
