ACCORhotels has bought a 5 per cent stake in luxury resort operator Banyan Tree in a move to strengthen its position in the luxury hotel space.

The agreement is a long-term partnership where both parties will collaborate to develop and manage Banyan Tree hotels around the world. Accor also has the option to purchase an additional 5 per cent stake in Banyan Tree.

Ho Kwon Ping, executive chair of Banyan Tree, said that the strategic alliance allows Banyan Tree to remain an independent company and yet accelerate the company’s growth around the world.

“This agreement is not only transformational for Banyan Tree, but is also an innovation for the global hospitality industry,” Ping said. “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.

"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."

This boosts Accor’s luxury portfolio, currently made up of Raffles, Fairmont, Sofitel Legend, So Sofitel, Sofitel, MGallery by Sofitel, Pullman and Swissôtel. The company formed a new luxury division after its acquisition of FRHI earlier this year.

Industry veteran Andrew Gibson is heading up wellbeing for Accor’s luxury division.

Based in Singapore, Banyan Tree currently manages or has ownership interests in more than 60 spas, as well as 30 hotels and resorts, 80 retail galleries, and three golf courses in 27 countries.

Sebastien Bazin, CEO and chair of AccorHotels, said: “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 globally, hence strengthening our leadership in the luxury hotel space.”