Banyan Tree Holdings and AccorHotels have entered into a long term partnership to develop and manage Banyan Tree-branded hotels around the world.
Banyan Tree will have access to AccorHotels’ global reservations and sales network, as well as its loyalty programme, Le Club AccorHotels.
AccorHotels will invest an initial SGD 24 million (US $16.8 million) in Singapore-based Banyan Tree and both parties will then co-develop the brands owned by Banyan Tree around the world.
According to a release, this investment will be made through a mandatory convertible debenture that at conversion will give AccorHotels an approximately 5% stake in Banyan Tree.
AccorHotels also has an option to purchase an additional approximately 5% stake.
Banyan Tree executive chairman Ho Kwon Ping said: “This agreement is not only transformational for Banyan Tree, but is also an innovation for the global hospitality industry. With the current consolidation of mega hotel companies, smaller but also global players – many family-controlled – are also seeking strategic alliances with the global giants.
“Our strategic alliance with AccorHotels allows us to remain an independent company, enabling us to continue securing hotel management agreements on our own and yet accelerating Banyan Tree’s speed and scope of expansion but with AccorHotels helping us to grow our brands around the world.”
AccorHotels CEO and chairman Sebastien Bazin said: “Banyan Tree Holdings has created key leading positions across Asia with luxury resorts, one of the fastest growing segments in the industry. We will bring scale to the network through our ability to develop and manage hotels under the Banyan Tree brands globally, hence strengthening our leadership in the luxury hotel space. We are confident that our investment will create incremental value for our shareholders.”
Source: Hotelier Middle East