International hotel group AccorHotels will be investing S$24 million into Singapore-listed hospitality brand Banyan Tree Holdings to develop and manage Banyan Tree branded hotels around the world.
In a filing to the Singapore Exchange on Thursday (8 December), Banyan Tree said the long-term partnership will provide the group access to AccorHotels’ global reservations and sales network, as well as its loyalty programme Le Club AccorHotels.
AccorHotels’ initial investment of S$24 million will be made via a convertible debenture which at conversion will give the travel and lifestyle group a five percent stake in Banyan Tree. AccorHotels also has the option to buy an additional five percent stake.
“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,” said Banyan Tree executive chairman Ho Kwon Ping.
Describing the collaboration as a great opportunity to complement its business proposition to owners with iconic brands, AccorHotels CEO and chairman Sebastien Bazin is confident the investment will create incremental value to their shareholders.
“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.”
With operation in 95 countries, AccorHotels offers unique experiences in more than 4,000 hotels, resorts and residences, as well as in over 2,500 private homes.
Banyan Tree Holdings, on the other hand, owns 43 hotels and resorts, 64 spas, 77 retail galleries, and three golf courses across 28 countries.