Banyan Tree Holdings has entered into a long-term partnership with AccorHotels, with both parties now looking to develop and manage Banyan Tree branded hotels around the world.
The partnership presents a significant global networking opportunity for Banyan Tree, which has created key leading positions across Asia with its luxury resorts, one of the fastest growing segments in the industry. With the current consolidation of mega hotel companies, these smaller but also global players – many family-controlled – are seeking strategic alliances with the “global giants.”
“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.
“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 [as] AccorHotels help 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 added.
As part of the agreement, Banyan Tree will also have access to AccorHotels’ global reservations and sales network, as well as its loyalty programme Le Club AccorHotels.
In turn, 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 a stake of about 5 per cent in Banyan Tree.
AccorHotels has an option to purchase an additional approximately 5 per cent stake.
Sebastian Bazin, CEO and Chairman of AccorHotels is confident that AccorHotels investment will create incremental value for its shareholders: “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.”