PROTEA HOTELS was formed on 1 July 1984, with an initial base of four managed properties which were controlled by Otto Stehlik and his partners. These properties were the Heerengracht and Capetonian Hotels in Cape Town, the Protea Gardens Hotel in Johannesburg and the San Lameer resort on the KwaZulu Natal South Coast. The company was owned 60% by Bankorp and 40% by Stehlik and his partners, who were also directors of the company.
A rapid expansion programme followed and within a few years, Protea Hotels offered accommodation right across the three-, four- and five-star spectrum. Every hotel was refurbished and upgraded and a higher star-grading obtained. Bankrupt hotels were turned around and put on a profitable financial footing. Today Protea is the largest hotel group in Africa with the most extensive network - over 100 fine hospitality establishments in seven countries on the African continent and four under construction in Dubai.
"Protea Hotels is dedicated to ensuring the longevity of our business for generations to come through responsibly managing our impact on the environment, our employees and the communities in which we operate."
Management Buy-out
In 1987, the Stehlik team bought out Bankorp's share in the management and property companies. Stehlik and his six co-directors thus controlled 100% of PROTEA HOTELS. In 1994, a further five Directors were appointed to the Board of Protea Hotels.
Restructuring
On I July 1988, a holding company, PROTEA HOSPITALITY CORPORATION (PTY) LIMITED (PHC), commenced operations with three focused operating divisions:
- PROTEA HOTELS, which is responsible for the management and marketing activities of the hotels carrying the Protea and African Pride brands. This is done on the basis of a management or marketing agreement, a joint venture or an association.
- PROTEA PROPERTY HOLDINGS, which are properties owned or leased by PHC. These properties have management agreements with Protea Hotels.
- PLAN ONE and PROCUREMENT INTERNATIONAL.
Plan One is a hotel development and consultancy company experienced in interior design and planning, conceptualising, refurbishing, upgrading and building hotels.
Procurement International is a company specialising in the sourcing and supply of hotel fixtures, furniture and equipment.
Plan One and Procurement International offer these services to properties within the Protea group and also operate on a consultancy basis outside of PHC. PHC has a shareholding in Plan One and Procurement International.
EMPOWERMENT THROUGH EQUITY
On 30 October 2000, PHC sold 18% of its shareholding to two Black Economic Empowerment partners. In 2005 Protea Hotels concluded a further Black Economic Empowerment transaction that saw a 53% BEE stakeholding in Protea Hotels. This transaction brought Protea Hotels more in line with the demographics of South Africa.
Purchase of PHC by MFS Leisure Resort Holdings, Australia
On 1 July 2007, PHC was sold to a leading global hospitality and travel group, MFS Leisure Resort Holdings (Pty) Limited of Australia, which is wholly owned by MFS Limited, an investment and financial services group listed on the Australian Stock Exchange. The shareholding is MFS 74% and Protea’s Black Economic Empowerment partners 26%, which is substantially ahead of Tourism Empowerment Charter requirements.
In early 2008, CVC Capital Partners, a leading global investment advisory firm headquartered in Luxembourg, with a network of 18 offices across Europe, asia and the USA, acquired 65% of the Stella Group.
The Empowerment Consortium consists of:
THE AKA CAPITAL
Aka Capital is a private equity and investment holding company, whose mission is to create a model for sustainable Black Economic Empowerment in order to contribute towards the economic transformation of South Africa.
Prime Portfolio Investment “A”
Prime Portfolio Investment “A” is a 100% Black owned and managed investment company that seeks involvement in business ventures or with partners who share its mission of job creation, skills transfer and social upliftment of historically disadvantaged South Africans.
Popcru Investment Holdings
Popcru Investment Holdings was formed by the Union Leaders of Popcru in order to enhance Black Economic Empowerment. The Union represents 120 000 men and women. Popcru Investment Holdings is 100% owned by the Union Members. Management is 70% black and 30% white, while union membership is 95% black.
Food and Allied Workers Union (FAWU)
Basebenzi Investments (Pty) Limited, formerly known as Ikhwezi Investments, was established as a profit driven venture which would ultimately benefit all 119 000 members of FAWU, of whom 99% are black.
NAWA (National African Women’s Alliance)
NAWA (Pty) Limited is a broad-based Women’s Economic Empowerment consortium, leading the economic empowerment and advancement of women throughout South Africa with unprecedented energy, force and commitment. The structure is innovative and unique, being 100% owned, controlled and managed by previously disadvantaged African women from various professions, businesses and industries throughout the country.
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