AccorHotels is to invest an initial €16 million for a 5% stake in luxury Asian group Banyan Tree Holdings to help expand the brand.
The two companies are to collaborate to develop and manage Banyan Tree branded hotels around the world.
Singapore-based Banyan Tree will also have access to AccorHotels’ global reservations and sales network, as well as its loyalty programme. Le Club AccorHotels.
Banyan Tree runs 43 hotels, resorts and spas across 28 countries in Asia.
Company executive chairman Ho Kwon Ping said: “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.”
The French chain’s chairman and CEO Sebastien Bazin said: “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.”