French multinational company AccorHotels will be investing S$24 million into Singapore-based hospitality brand Banyan Tree Holdings, the latter said in a press release on Thursday (Dec 8).
Under the long-term partnership, both parties intend to work together 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, it added.
Banyan Tree currently has 43 hotels and resorts, 64 spas, 77 retail galleries, and three golf courses in 28 countries, while AccorHotels operates in 95 countries and has stakes in more than 4,000 hotels, resorts and residences, as well as in more than 2,500 private homes.
The initial S$24 million investment by AccorHotels will give the travel and lifestyle group a stake of about 5 per cent in Banyan Tree upon conversion of a mandatory convertible debenture – a long-term security that will be automatically converted to stock at a specified date.
AccorHotels also has the option to purchase an additional stake of about 5 per cent, Banyan Tree said in the press release.
Banyan Tree Executive Chairman Ho Kwon Ping described the agreement as “transformational” for Banyan Tree and “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,” he 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. ”
AccorHotels Chief Executive Officer and Chairman Sebastien Bazin said the collaboration was “a great opportunity to complement our business proposition to owners with iconic brands”.
“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,” he said, adding that the group was confident that the investment would create incremental value for its shareholders.
Source : Channel NewsAsia – 8 Dec 2016