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Protea in R2bn deal with US hotel giant

Johannesburg  - South African-based Protea group is finalising an agreement for US hotel giant Marriott to acquire its brands and its management business for R2.02bn.

The purchase is subject to regulatory approval, but Marriott and Protea plan to close the transaction on April 1 2014, the firms said in a statement.

Protea 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. 

"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. 

The Protea is Africa's largest hotel chain with a total of 116 hotels and 10 148 rooms in South Africa and  countries such as Nigeria, Namibia, Malawi, Uganda and Tanzania. 

Marriott has nearly 3 900 properties in 72 countries and territories.  

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