Banyan Tree set to partner Accor
Banyan Tree Holdings, a Singapore-listed company, has unveiled a $24 million plan to tie up with hospitality giant AccorHotels in a move that 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 yesterday.
Banyan Tree - which has 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, and its loyalty programme Le Club AccorHotels.
AccorHotels will invest an initial $24 million in Banyan Tree. 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: "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: "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." - THE STRAITS TIMES