27 Oct IDC Co-funds 100% Black owned Indalo Hotel Mahikeng for acquisition of Protea Hotel Mahikeng purchase for 80 million.
Mahikeng – The Industrial Development Corporation (IDC) is pleased to announce its support of funding the acquisition of Protea Hotel Mahikeng by Indalo Hotel Mahikeng (Pty) Ltd, a newly established, 100% black-owned entity for a co-funded investment of R80 million together with:
- The Department of Tourism’s Equity Fund (TEF)
- The Small Enterprise Development Finance Agency (SEFDA) and shareholder’s contribution.
The investment will support funding for Indalo Hotel Mahikeng (Pty) Ltd in acquiring the business enterprise of Glasshouse (Pty) Ltd, trading as Protea Hotel Mahikeng. Indalo Hotel Mahikeng (Pty) Ltd (“Indalo Mahikeng”). IDC’s significant investment will enable Indalo Hotel Mahikeng to grow as a black industrialist company in the tourism sector, contributing to industry transformation and sustainability of the hotel. The acquisition forms part of the Indalo Hotels Leisure’s strategy to become a leading black- owned hospitality group in South Africa.
Kagisho Bapela, IDC’s Head of Services Sector in his opening speech stated:
“Today marks a milestone in our quest as the IDC to support black industrialists who have demonstrated capacity to contribute to the transformation of various sectors of the economy. This establishment marks progress promoting investment in areas outside the metropolitan areas.”
Bapela further acknowledged the collaborative efforts of government entities, expressing appreciation to SEDFA (under the Department of Small Business Development) and the Department of Tourism for their partnership in supporting entrepreneurs.
About Protea Hotel Mahikeng
Protea Hotel Mahikeng is a four-star graded hotel featuring:
- 99 guest rooms
- 2 conference venues accommodating up to 80 guests
- A restaurant, bar, and swimming pool
- Prime location on Nelson Mandela Drive, within Mahikeng’s development hub
The hotel was developed in 2005 and was initially partly owned by Protea Hotels before being acquired by the Marriott Hotels Group. Indalo Hotels and Leisure have established a strategic partnership with Marriot to position itself as a third-party operator, owning and managing hotels under Marriott’s franchise brands. This partnership is expected to be mutually beneficial and aligned with both Indalo’s and Marriott’s growth strategies.
The Protea Hotel, a landmark property in the town has historically maintained a strong market share and solid earnings, making it an attractive investment in Indalo’s growth journey toward becoming an established hospitality group. The hotel is expected to continue generating strong revenue, supported by a reputable brand and experienced management team.
The acquisition by the Indalo Group is a key step in Indalo Hotels and Leisure’s strategy to becoming a leading black-owned hospitality group in South Africa. The hotel is managed by Marriot, ensuring high operational standards and benefiting from Marriott’s global brand and marketing network. Indalo also plans to leverage its existing management capabilities to explore other key tourism venture. The hotel is well positioned to deliver sustainable growth and contribute meaningfully to the local economy.
