Marriott to open 30 new South Africa hotels by 2020

Marriott International announced plans to open 30 new hotels in South Africa by 2020, looking to expand across the continent after buying out Protea Hospitality for $190 million. Reuters reported that the bulk of the growth in South Africa will be targeted in Nigeria, Egypt, the UAE and Saudi Arabia. Marriott is aiming to triple revenue and room numbers across Africa and the Middle East, reaching for 75,000 rooms in the region within six years.

Marriott hotels under construction in Africa will have a total of 5,000 rooms, requiring a $1.5 billion investment from real estate partners, Alex Kyriakidis, Marriott's head of Middle East and Africa, told Reuters. "We wanted to target countries where ... we would get maximum bang for our buck in terms of multiple hotel opportunities," Kyriakidis said.

According to News 24, Marriott now operates over 4,000 hotels in 79 countries, and has almost doubled its Middle East and Africa presence to over 160 hotels and 23,000 rooms after the purchase of Protea Hospitality. The new pipeline of hotels coming to the Middle East and Africa, including Protea's pipeline, includes more than 65 hotels and 14,300 rooms, including more than 20 hotels and 3,000 rooms in Sub-Saharan Africa alone.

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Zacks reported that Marriott spent roughly $200 million on the Protea transaction. As part of the deal, Protea retained a number of minority interests in some of its hotels. Resulting from this, 45 percent of Protea’s total rooms will be managed by Marriott, 40 percent will be franchised and the rest will be leased.

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