TRAVEL services and hospitality company Stella Group has expanded offshore, acquiring Protea Hotels of Africa for $255 million.

The acquisition gives Stella Group more than 9000 rooms in Africa, with more than 3000 more to come by the end of the 2008 financial year.

Stella Group's existing portfolio comprises about 15,000 rooms across the corporate and leisure market in Australia and New Zealand under brands including Mantra, Peppers, BreakFree, Saville and Pacific International Suites. Protea is Africa's largest hotel management company, operating 126 hotels in 13 countries. The properties include seaside resorts, country hotels, mountain retreats, private game reserves and city centre hotels.

Stella Group managing director Rolf Krecklenberg says the acquisition is a substantial step towards establishing Stella as an international, fully-integrated travel company.

"When the transaction is complete, Stella Group will be an integrated travel services provider across Australia, New Zealand and Africa and will have broad exposure to Europe through a significant shareholding in Golden Tulip Hospitality Group, one of the world's largest hotel operators," he says.

The Protea Hotels acquisition complements Stella's UK and South African wholesale travel services businesses. The acquisition, due to be completed in July 2007, is subject only to approval from the South African Reserve Bank.