SINGAPORE - Banyan Tree Holdings, a Singapore-listed company, has unveiled a S$24 million plan to tie up with hospitality giant AccorHotels, in a move which could eventually see the latter own up to 10 per cent of Banyan Tree.
Under a long-term partnership proposed under a heads of agreement, the two parties intend to work together to develop and manage Banyan Tree branded hotels around the world, the company said in a statement to the Singapore Exchange on Thursday.
Banyan Tree - with 43 hotels and resorts, 64 spas, 77 retail galleries, and three golf courses in 28 countries - will also have access to AccorHotels' global reservations and sales network, as well as its loyalty programme Le Club AccorHotels.
AccorHotels will invest an initial S$24 million in Banyan Tree and the two companies will then jointly 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 stake of about 5 per cent.
Mr Ho Kwon Ping, executive chairman of Banyan Tree, said: "This agreement is not only transformational for Banyan Tree, but is also an innovation for the global hospitality industry."
He added: "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."
Mr Sebastien Bazin, chief executive and chairman of AccorHotels, 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."