Marriott International Inc would be acquiring businesses of Protea Hospitality Holdings. Marriott would be buying three brands and the management business of the Cape Town-based firm. Financial terms of the transaction were not disclosed but the acquisition would help the US hotel chain grow in Africa. The deal would provide add 23,000 rooms for Marriott in the region.
Marriott Chief Executive Officer Arne Sorenson said in a statement, "Africa has significant untapped potential for travel and tourism, both as a destination and source of new global travelers."
Protea Hospitality Holdings is the owner of the Protea Hotels, Protea Hotel Fire & Ice! And African Pride Hotels. In South Africa, it owns 80 hotels. It also has other properties in Malawi, Nigeria, Namibia, Zambia, Tanzania and Uganda. The terms of the deal state that Protea would continue to be owner of the hotels it now owns. Protea Hospitality Holdings would also hold minority stake in some of the properties it manages. The deal is expected to close in the first quarter.
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