AccorHotels, fresh on the heels of wrapping up the concierge deal with John Paul, has made another acquisition – a 5% stake in Singapore-based Banyan Tree Holdings – for S$24 million (US$16.9 million),
The investment will be made through a mandatory convertible debenture that, at conversion, will give AccorHotels about 5% stake in Banyan Tree. The hotel group has an option to purchase an additional stake of about 5%.
Under the long-term partnership both parties will jointly develop and manage Banyan Tree branded hotels around the world.
The “heads of agreement” will also see Banyan Tree having access to AccorHotels’ global reservations and sales network, as well as its loyalty programme Le Club AccorHotels.
One of Banyan Tree’s luxury property in Lijiang, China (Image credit: Banyan Tree)
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. 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.”
Sebastien Bazin, CEO and chairman of AccorHotels, added that its collaboration with Banyan Tree was a great opportunity to complement its business proposition to owners with iconic brands while servicing guests.
“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.”
AccorHotels has also acquired Wipolo, Oasis Collections, SquareBreak and onefinestay as part of its efforts to transform the hotel group into a “travel companion providing innovative services to travellers at every step of their journey.”
The luxurious Fairmont Banff Springs in Canada (Image credit: AccorHotels)
Also in AccorHotels’ portfolio are luxury brands including Raffles, Fairmont, Sofitel Legend, SO Sofitel, Sofitel, MGallery by Sofitel, Pullman and Swissôtel; midscale and boutique brands of Novotel, Mercure, Mama Shelter and Adagio; economy brands including ibis, ibis Styles, ibis budget; and the regional brands of Grand Mercure, The Sebel and hotelF1.
Banyan Tree, which launched its first resort Banyan Tree Phuket in 1994, now has 43 hotels and resorts, 64 spas, 77 retail galleries, and three golf courses in 28 countries. The group’s primary business is centred on four brands: Banyan Tree and Angsana, as well as newly established Cassia and Dhawa.
Banyan Tree also operates the integrated resorts of Laguna Phuket in Thailand, Laguna Bintan in Indonesia and Laguna Lăng Cô in Central Vietnam through the group’s subsidiary, Laguna Resorts & Hotels Public Company Limited.
• Featured image credit (Banyan Tree Seychelles, Mahe): FlairImages/iStock
