Banyan Tree Holdings has signed a heads of agreement with AccorHotels that will see the global powerhouse manage the company’s properties and collaborate to develop Banyan Tree-branded hotels around the world.
The agreement means Banyan Tree will also have access to AccorHotels’ global reservations and sales network, as well as its loyalty program Le Club AccorHotels.
“This agreement is not only transformational for Banyan Tree, but is also an innovation for the global hospitality industry,” says Banyan Tree Executive Chairman, Ho Kwon Ping.
“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.
“We believe 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,” he said.
AccorHotels will invest an initial SGD $24 million (AUD$22.6 million) in Singapore-based Banyan Tree and both parties will then co-develop the brands owned by Banyan Tree around the world.
AccorHotels says this investment will be made through a mandatory convertible debenture that at conversion will give AccorHotels an approximately 5% stake in Banyan Tree. AccorHotels has an option to purchase an additional approximately 5% stake.
“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,” said AccorHotels CEO and Chairman, Sebastien Bazin.
“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,” he said.
AccorHotels now offers more than 4,000 hotels, resorts and residences, as well as in over 2,500 of the finest private homes around the globe.