Marriott completes acquisition of Protea

Marriott International
Marriott International

MARRIOTT International, Inc. (NASDAQ: MAR) today became the largest hotel company in Africa according to published information, and nearly doubled its presence in its Middle East and Africa region to more than 160 hotels and 23 000 rooms as it completed its acquisition of the 116-hotel Protea Hospitality Group (PHG), based in South Africa.  Marriott now operates or franchises more than 4 000 hotels in 79 countries.

At the same time, Marriott said that its pipeline of new hotels in the Middle East and Africa, including Protea’s pipeline, is now more than 65 hotels and 14 300 rooms, including more than 20 hotels and 3 000 rooms in sub-Saharan Africa.

Marriott’s new Protea portfolio consists of 10 148 rooms in seven African countries, including South Africa.  The company now manages, franchises and leases hotels across the Protea Hotels brand (103 hotels), comprising a full and diverse range of outstanding hotels and resorts; the award-winning lifestyle boutique Protea Hotel Fire & Ice! (two hotels); and the superior deluxe African Pride Hotels collection (11 hotels).  In addition to its industry-leading 79 hotels in South Africa, Marriott’s Protea portfolio also has 37 hotels in Malawi, Namibia, Nigeria, Tanzania, Uganda and Zambia.

Alex Kyriakidis, president and managing director of Marriott International’s Middle East and Africa (MEA) region, said: “Today is the culmination of months of highly productive collaboration between Protea and Marriott International teams.  We are delighted that such a tremendously dedicated, talented and effective team, which has been so well led by Protea chief executive officer Arthur Gillis, is now joining the Marriott International family.  With the addition of Protea’s regional knowledge, expertise and infrastructure, we are incredibly well-positioned to continue growing in one of the fastest expanding economic markets in the world.”

As previously disclosed, Marriott paid approximately R2,02 billion, or approximately US$200-million at current exchange rates, which represents roughly 10 times anticipated pro forma 2014 calendar year EBITDA (earnings before interest, taxes, depreciation and amortisation), excluding transaction costs.

Marriott expects that the Protea portfolio will be available for booking on Marriott.com or via Marriott International’s Global Reservations Centres toward the end of May, and the hotels will join the Marriott Rewards guest loyalty programme at a later point to be announced.

Until then, please go to www.Proteahotels.com for reservations.