French group AccorHotels is rounding off a busy year of expansion with its acquisition of 5% of Singapore-based luxury hotel brand Banyan Tree.
The new deal, which will see AccorHotels invest an initial £13.6m into Banyan Tree Holdings, is intended to help the brand expand beyond its portfolio of 43 hotels and resorts, 64 spas, and three golf courses across 28 countries. Banyan Tree will gain access to AccorHotels' global reservations and sales network, as well as its loyalty programme.
It has been agreed that AccorHotels will have an option to purchase an additional 5% stake in the business.
Ho Kwon Ping, executive chairman of Banyan Tree, described the agreement as "transformational" for the company and "an innovation" for the global hospitality industry.
"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, chief executive and chairman of AccorHotels, added that the deal will enable AccorHotels to strengthen its leadership in the luxury hotel space.
"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."
Throughout 2016, AccorHotels has continued to grow within the traditional hotel space through the acquisition of FRHI Holdings, the parent company of 155 hotels across the Fairmont, Raffles and Swissôtel brands, as well as buy outside its normal comfort zone and launch a new brand. The FHRI Holdings deal involved a £554m cash payment and the issuing of 46.7 million shares to a consortium of investors.
In April, AccorHotels bought luxury home share business Onefinestay for £117m, and two months later said that it intended to acquire 80% of global concierge company John Paul for £115m.
The company has also announced plans to launch Jo&Joe, a new economy brand to appeal to millennials. Fifty sites are expected to open in cities worldwide, including London, Paris and Rio de Janeiro.
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