AccorHotels keeps spreading its wings with Banyan Tree deal
Banyan Tree Holdings on Thursday announced that AccorHotels has taken a 5% stake in the company with an initial investment of S$24 million (US$16.9 million) to collaborate long-term on the development of Banyan Tree-branded hotels around the world.
Banyan Tree will also have access to AccorHotels’ global reservations and sales network, as well as its loyalty program Le Club AccorHotels.
This investment will be made through a mandatory convertible debenture with AccorHotels having an option to purchase an additional approximately 5% stake.
“This agreement is not only transformational for Banyan Tree, but is also an innovation for the global hospitality industry,” said Ho Kwon Ping, executive chairman of Banyan Tree. “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.”
Ho added, “This agreement will propel our brands rapidly to global reach and range and strengthen our ability to embrace change and innovation in the hospitality industry with a strong global partner. We are excited and committed to this partnership.”
Sebastien Bazin, CEO and chairman of AccorHotels, said: “Our collaboration with Banyan Tree is a great opportunity to complement our business proposition to owners with iconic brands, while always better servicing our guests. 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.”