Banyan Tree and AccorHotels announce strategic partnership

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 SGD24 million ($16.6 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 per cent stake in Banyan Tree. AccorHotels has an option to purchase an additional approximately 5 per cent stake.

Ho Kwon Ping, executive chairman of Banyan Tree, said that this agreement was not only transformational for Banyan Tree, but 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,” he said.

“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 added.

“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 Sebastien Bazin, CEO and chairman of AccorHotels. “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.”

Travel and lifestyle group AccorHotels offers unique experiences in more than 4,000 hotels, resorts and residences, as well as in over 2,500 of the finest private homes around the globe. Benefiting from dual expertise as an investor and operator through its HotelServices and HotelInvest divisions, AccorHotels operates in 95 countries.

Banyan Tree Holdings Limited operates and develops premium resorts, hotels, residences and spas. It has 43 hotels and resorts, 64 spas, 77 retail galleries, and three golf courses in 28 countries. Each resort typically has between 75 to 300 rooms and commands room rates at the higher end of each property’s particular market.

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