The agreement, which includes a significant investment from AccorHotels, allows both companies to co-develop the brands owned by Banyan Tree around the world. Banyan Tree will remain an independent company and continue to secure hotel management agreements on its own while taking advantage of AccorHotels’ help in growing the brands worldwide.
Banyan Tree will also have access to AccorHotels’ global reservations and sales network, as well as its loyalty program, Le Club AccorHotels.
AccorHotels will invest an initial SGD 24 million (c. €16 million) in Banyan Tree through a mandatory convertible debenture that at conversion will give AccorHotels an approximately 5 percent stake in Banyan Tree. AccorHotels has an option to purchase an additional approximately 5 percent stake.
This story originally appeared on www.travelagentcentral.com.