Paris-based AccorHotels is investing about $17 million in Singapore-based Banyan Tree Hotels & Resorts and will co-develop and manage future resorts under Banyan Tree's four brands.

Accor is buying a debenture in Banyan Tree that's convertible to about 5% of the company. AccorHotels, whose brands include Sofitel and Pullman, has the option to buy another 5% of Banyan Tree oversees its flagship brand plus Angsana, Cassia and Dhawain. Banyan Tree has 43 resorts, primarily in China and Southeast Asia. In the Western Hemisphere, Banyan Tree has two resorts in Mexico (Acapulco and Riviera Maya). The company has 15 properties under construction.

Accor continues to increase its investments in the luxury sector. Earlier this year, the company completed an $840 million acquisition of Fairmont, Raffles and Swissotel, doubling its luxury hotel count. In addition to its Sofitel and Pullman luxury brands, Accor oversees the Ibis, Novotel and Mercure brands.

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