Marriott signs letter of intent to acquire Protea Hotel Group’s Hotel Operations and Brands

BETHESDA, MD,  8 November 2013 – Marriott International, Inc. (NASDAQ: MAR) today said it had signed a letter of intent with Protea Hospitality Holdings of Cape Town, South Africa to acquire Protea Hotels’ brands and its management business that operates or franchises 116  hotels across three brands with 10,184 rooms in South Africa and six other Sub-Saharan African countries.  The transaction would nearly double  Marriott’s distribution in Africa to more than 23,000 rooms, and would also provide Marriott with a proven operational platform and leadership team to accelerate Marriott’s expansion plans and solidify its leadership position in the dynamic and growing African hotel market. 

Protea Hotels, founded in 1984, manages, franchises and leases hotels across the Protea Hotels brand.

The otherwise non-binding letter of intent includes provisions that the parties will negotiate exclusively with each other.  The transaction is subject to completion of due diligence, negotiation and execution of definitive documents, receipt of customary third party and governmental consents and approvals and satisfaction of other customary conditions for transactions of this kind that the parties expect will be included in the definitive transaction documents.

The proposed terms of the transaction are not being disclosed at this time.  The parties stated that they plan to sign definitive agreements by year-end 2013 and the transaction could close in the first three months of 2014.   In any event, Marriott does not expect the transaction would have a material impact on its 2014 results.