Marriott Targets 16 African Nations After Protea Acquisition

Marriott International Inc., the world’s second-largest publicly traded hotel company, said it will continue expanding its chains in African markets following the acquisition of South Africa’s Protea Hospitality Holdings.
“We have 25 Marriott brand hotels under construction in seven countries in Africa that will come on stream over the next four years,” Alex Kyriakidis, the chain’s president for the Middle East and Africa, said in an interview in Cape Town yesterday. The new hotels “are going to bring us into Benin, Gabon, Ghana, Ethiopia and Mauritius. With our existing hotels plus those in the pipeline and those Protea operates today we will be in 16 countries in Africa by 2017.”
Marriott yesterday concluded a deal announced in January to buy Cape Town-based Protea for about $200 million. The transaction almost doubles the Bethesda, Maryland-based company’s rooms in Africa to about 23,000 and will help it expand further in the region, where a growing middle class and rising travel are fueling the fastest pace of hotel development in the world.
Protea manages, franchises and leases 79 hotels in South Africa and 37 others in Malawi, Namibia, Nigeria, Tanzania, Uganda and Zambia. Marriott operates or franchises more than 4,000 hotels in 79 countries, according to an e-mailed statement from the companies. Marriott shares have gained 15 percent this year, valuing the company at $16.78 billion.
Protea hotels will be marketed on Marriott’s global distribution platform and exposed to its 42 million loyalty-program members, Kyriakidis said. 


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