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ACCOR Takes Ownership Stake In Banyan Tree Group

Author: Bill Barnett. Category: Hotels. Posted: 9th Dec 2016

French hospitality chain ACCOR has acquired a 5% holding in Singapore’s Banyan Tree Holdings for a reported USD17 million.

ACCOR has an option for a further 5% interest in the future.

Under the terms, the two groups will collaborate on the expansion and management of Banyan Tree projects on a global basis.

The deal comes on the heels of ACCOR’s acquisition of FRHI Holdings which includes the Fairmont, Raffles and Swissotel brands.

Banyan currently have 43 properties under multiple brands.

For those looking at the financial performance of Banyan Tree Holdings which is listed on the Singapore Stock Exchange, one clear challenge has been the high levels of debt the company carries.

Earlier this year a major restructuring of the company’s corporate set-up was undertaken and management downsized. ]

Looking at ACCOR, currently Chinese conglomerate Jin Jang International hold a 12 per cent ownership and have publically made noise about increasing the stake.

One has to look at the current spate of consolidation in the hotel sector and the factor China plays and wonder what is the end game for the ACCOR and Banyan Tree deal? .

Interestingly this week the acquisition of Carlson Hotels by China’s HNA Group finally completed despite industry speculation that the process might be derailed.

Clearly in 2016 the two banner hotel storylines around the world are the two C’s, being consolidation and China.

 

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