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Marriott to acquire Protea Hospitality Holdings
Marriott International and South Africa's Protea Hospitality Holdings have announced that they have signed definitive agreements for the purchase by Marriott of Protea's three brands and its management company.
Under terms of the agreements Marriott will pay approximately 2.02 billion rand, or approximately US $186 million at current exchange rates, subject to normal closing adjustments. The purchase price represents approximately 10 times anticipated pro forma 2014 calendar year EBITDA (earnings before interest, taxes, depreciation and amortization) excluding transaction costs.
The transaction is subject to receipt of certain third party and governmental consents, including exchange control approval from the South African Reserve Bank and competition approval from the South African Competition Commission and the Common Market for Eastern and Southern Africa ("COMESA") and satisfaction of other customary conditions for transactions of this kind. Assuming these conditions are met, Marriott and Protea plan to close the transaction on April 1, 2014. Marriott does not expect the transaction will have a material impact on its 2014 results.
Protea has 116 hotels with 10,148 rooms in seven African countries including South Africa. At closing, Marriott will become the largest hotel company in the Middle East & Africa region, nearly doubling its distribution there to more than 23,000 rooms.
As part of the transaction, Protea Hospitality Holdings 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 for such hotels. The property ownership company will also retain a number of minority interests in other Protea-managed hotels. At closing Marriott will manage approximately 45 percent of the rooms, franchise approximately 39 percent of the rooms, and lease approximately 16 percent of the rooms.
Protea Hotels is one of the largest and leading hotel group in Africa with an extensive footprint; more than 116 hotels throughout South Africa and six other African countries, including Zambia, Nigeria, Namibia, Malawi, Uganda and Tanzania. The company was founded in 1984 and has grown its portfolio and brands since. The group comprises of two brands, namely the mid-up market Protea Hotels (including the lifestyle brand Protea Hotel Fire & Ice!) brand and the superior deluxe African Pride Hotels, Lodges and Country Houses brand.
Aqua Hospitality adds five new hotels in five weeks
Aqua Hospitality continues to rapidly expand as five new hotels - totaling more than 850 rooms - joined the collection over a five week period. Aqua has added three Hawaii properties and its first two hotels outside of Hawaii, bringing the company's portfolio to 29 hotels. On the heels of adding the five new properties, Aqua will work with hotel owners investing more than $60 million in renovation and refreshments to transform Aqua properties throughout 2014.
"Aqua's history has been built around successfully renovating and repositioning Hawaii hotels," said Ben Rafter, Aqua Hospitality's president and CEO. "We continue to attract hotel owners who are motivated to enhance their properties because of Aqua's proven approach of ultimately increasing revenue. Our hotel owners recognize that we care what happens at the hotels and strive to increase the value of the assets."
The five new Aqua Hospitality properties include:
Luana Waikiki, Oahu
Luana Waikiki is an AAA three-diamond property with easy access to area beaches, dining, attractions and nightlife. Named for the Hawaiian term "to relax, be content and enjoy pleasant surroundings," the hotel amenities include a sundeck with swimming pool and barbecue area, a large fitness center and laundry facilities. The hotel also features a café, spa and nail salon onsite. The 225 guest rooms include a lanai or patio, travertine marble floors, tropical décor with pineapple-motif furnishings, WiFi Internet access in-room and throughout the hotel, flat-screen televisions, and safes for extra security. Many rooms also include kitchenettes and living areas.
Hilo Naniloa Hotel, Hawaii Island
Hilo Naniloa Hotel is a 383-room hotel that provides beachfront accommodations for those enjoying the Hawaii Volcanoes National Park. Formerly known as the Naniloa Volcanoes Resort, the property will undergo a major renovation and emerge as an environmentally friendly, marine art-themed vacation resort. Plans include transforming the hotel into a museum-like celebration of the marine life that makes Hawaii a special place. A sculpture garden between the hotel and the beach will feature a bronze life-sized baby humpback whale whose spout blows like a geyser every hour.
Hokele Suites Waikiki, Oahu
Hokele Suites Waikiki is located just two blocks to world-famous Waikiki Beach and the area's best shopping, dining and nightlife. The 104-room, 10-floor hotel features studios, one-, two- and three-bedroom units each with full kitchens and inviting tropical décor. Rooms are pet-friendly and include a private lanai, air-conditioning, high-speed Internet access, refrigerator, microwave, stove and coffeemaker. Guests also enjoy on-site amenities including a central courtyard pool, restaurant and gift shop. Hokele Suites Waikiki, a LITE hotel, is located at 412 Lewers Street.
Beyond Hawaii - Guam
As part of Aqua's expansion outside of Hawaii, Aqua now manages two Guam properties, one formerly operated as a Ramada and the other, as a Days Inn. The Ramada property has been renamed Aqua Suites Guam and has become part of the Aqua Hotels & Resorts brand, and The Days Inn property will continue to fly the Days Inn flag while being operated by Aqua Hospitality.
Starwood sells St. Regis Bal Harbour to Al Rayyan Tourism Investment Company
Starwood Hotels & Resorts Worldwide and Al Rayyan Tourism Investment Company ("ARTIC"), the international hospitality subsidiary of Al Faisal Holding Company, one of Qatar's largest private diversified industry groups, have announced that ARTIC has acquired The St. Regis Bal Harbour Resort in Miami, Florida for $213 million. The property will continue to be managed under a long-term agreement by Starwood Hotels and also continue to fly the St. Regis flag.
Amenities at The St. Regis Bal Harbour include: three distinctive dining outlets, including chef Jean-Georges Vongerichten's J & G Grill; a 14,000 square-foot Remède Spa; two ocean-view pools; and 11,200 square feet of indoor function space and several outdoor venues. Following in the tradition of The St. Regis New York, The St. Regis Bal Harbour Resort features the hallmarks of St. Regis hotels, including the St. Regis Butler Service, bespoke guest experiences and luxury accommodations.
The St. Regis Bal Harbour Resort is located at 9703 Collins Avenue, directly opposite the Bal Harbour Shops and near Miami's vibrant South Beach. The 27-story oceanfront property features 207 rooms and suites. The property also features the St. Regis Bal Harbour Residences, branded private residences and condo-hotel units, which are nearly sold out.
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