AccorHotels has formed a new partnership with Banyan Tree, which includes the European hospitality giant taking an equity stake in the Singapore-based luxury hotel group.
According to the new long-term agreement, the two 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.
AccorHotels will invest an initial SG$24 million (US$17m) in Banyan Tree, which equates to an approximate 5% stake. It also has an option to purchase an additional 5% of the Singaporean company.
Ho Kwon Ping, executive chairman of Banyan Tree, said agreement would be “transformational” for his hotel group.
“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,” Ho said. “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,” he added.
AccorHotels’ CEO & chairman, Sebastien Bazin, commented; “We will bring scale to the [Banyan Tree] 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.”
The partnership with Banyan Tree marks the latest phase of AccorHotels’ strategy of expansion through equity investments. Earlier this year the company completed a US$2.7 billion purchase of the company that operates the Fairmont, Raffles and Swissotel brands, and it has also either fully acquired or taken stakes in companies including John Paul, onefinestay, Oasis Collections and Squarebreak.
Banyan Tree currently operates more than 40 hotels and resorts, plus a collection of spas and retail facilities, mainly in Asia.