It follows similar deals by Accor in the past year including the acquisition of Fairmont, Raffles and Swissotel owner FRHI for £1.9bn.
The partnership will see Accor acquire a five per cent stake in Banyan Tree, which runs 43 luxury hotels and resorts in 28 countries, and help expand its portfolio worldwide.
Banyan will have access to Accor’s global reservation and sales network as well as its Le Club AccorHotels loyalty programme.
Sebastien Bazin, chairman of AccorHotels, said Banyan’s luxury resorts were ‘one of the fastest growing segments’ of the hospitality 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,” said Bazin.
“We are confident that our investment will create incremental value for our shareholders.”
Further mergers expected
The deal follows the $13.6bn merger of the Marriott and Starwood hotel groups earlier this year.
Banyan executive chairman Ho Kwon Ping said that smaller companies were increasingly looking to partner with larger brands to challenge with major competitors.
“This agreement is not only transformational for Banyan Tree, but is also an innovation for the global hospitality industry,” said Ho.
“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.”
Analysts have predicted that the hotel sector will increasingly see similar partnerships as companies look to match the ‘titanic’ Marriott/Starwood behemoth.
The deal is the latest in a string of acquisitions made by Accor this year, including the purchase of home rental service OneFineStay and its investment in German boutique brand 25hours.