Banyan Tree Holdings has announced that it has entered into a heads of agreement with AccorHotels.
Under a long-term partnership, both parties intend to collaborate to develop and manage 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 programme Le Club AccorHotels.
AccorHotels will invest an initial SGD 24 million (c. ¬16 million) in Singapore-based Banyan Tree and both parties will then co-develop the brands owned by Banyan Tree around the world.
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.
“This agreement is not only transformational for Banyan Tree, but is also an innovation for the global hospitality industry,” says 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 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.”
