Banyan Tree ties up with AccorHotels

AccorHotels will inject $24m initial investment.

Banyan Tree Holdings announced that it has entered into a heads of agreement with AccorHotels.

Under a long-term partnership, both parties intend to collaborate to develop and manage Banyan Tree branded hotels around the world. Banyan Tree 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 SGD 24 million (c. €16 million) in Banyan Tree and both parties will then co-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 an approximately 5% stake in Banyan Tree.

AccorHotels has an option to purchase an additional approximately 5% stake.