Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr European hospitality giant AccorHotels has formed a new strategic partnership with Banyan Tree, the Singapore-based luxury hotel group in a move which includes the European hospitality giant acquiring a 5% equity stake in the smaller Asian group. Under a long-term partnership, AccorHotels will invest an initial €16 million, equivalent to SGD 24 million (Singaporean Dollars) in Banyan Tree and both parties will then co-develop the brands owned by Banyan Tree around the world. In return, Banyan Tree will also have access to AccorHotels’ global reservations and sales network, as well as its loyalty programme called Le Club. Banyan Tree‘s Executive Chairman Ho Kwon Ping stated that the move would be “transformational” for his hotel and hospitality group. He went on to state,“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. We believe this agreement will propel our brands rapidly to global reach and range and strengthen our ability to embrace change and innovation in the hospitality industry with a strong global partner. We are excited and committed to this partnership.” On the other side, AccorHotels’ CEO & chairman, Sebastien Bazin, commented; ““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 .” AccorHotels’ partnership with Banyan Tree marks the latest phase of the European giant’s strategy of expansion through equity investments. Earlier this year the company completed a US$2.7 billion purchase of FRHI Hotels & Resorts, the company that operates the Fairmont, Raffles and Swissotel brands, and it has also either fully acquired or taken stakes in companies including John Paul, Oasis Collections and Squarebreak. Banyan Tree currently operates more than 40 hotels and resorts, plus a collection of spas and retail facilities, mostly in Asia.