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 Hotels is the largest hotel group in Africa with the most extensive network - over 100 fine hospitality establishments in nine countries on the African continent!