Banyan Tree Holdings and AccorHotels have announced a new, long-term partnership.
The new alliance will see both parties collaborate for the development and management of Banyan Tree branded hotels spanning the globe. Banyan Tree will also be granted access to AccorHotels’ global reservations and sales network, as well as its loyalty programme, Le Club AccorHotels.
Following the partnership, AccorHotels will invest an initial $17 million in Singapore-based Banyan Tree, and both parties will then co-develop the brands owned by Banyan Tree around the world. AccorHotels will therefore acquire a five per cent stake in Banyan Tree, and will be given the opportunity to purchase an additional five per cent.
Commenting on the news was executive chairman, Banyan Tree, Ho Kwon Ping: “This agreement is not only transformational for Banyan Tree, but is 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. 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,” Ping added.
Also pleased with the development, CEO and chairman, AccorHotels, Sebastien Bazin noted: “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. 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.”