Marriott completes Protea deal to grow portfolio in Africa
Marriott International has become 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, 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.
Arne Sorenson, Marriott International’s president and chief executive officer, said: “Today marks a new beginning.
“We look forward to integrating the superb Protea team into the Marriott International family, and together, to work toward new opportunities for growth and advancement throughout South Africa and the continent.”
According to the World Bank, Sub-Saharan Africa is expected to grow at a more than five per cent pace through 2015.
As previously disclosed, Marriott paid approximately 2.02 billion rand, or approximately US$200 million at current exchange rates, which represents roughly ten times anticipated pro forma 2014 calendar year EBITDA excluding transaction costs.