Banyan Tree Holdings Limited (Banyan Tree) and China Vanke Co., Ltd (Vanke) have agreed to create Banyan Tree China (BTC), a new joint venture between Banyan Tree and Vanke, to consolidate the ownership of Banyan Tree-branded hotels and assets in China. The amount of initial paid-up capital of BTC is estimated to be no more than RMB2,000 million. BTC will also be the development and management platform for new projects by both parties in hospitality, senior-living and wellness.

BTC will initially be controlled 50:50 by Banyan Tree and Vanke through the injection by Banyan Tree of all its China-owned assets into BTC at valuation, which is to be confirmed by an independent valuation methodology. The current book value of these assets (before valuation) is approximately RMB720 million. BTC will at its discretion invite owners of the other 15-plus existing hotels and 20-plus hotels bearing various Banyan Tree brands under development in China to inject their hotels into BTC under mutual agreement. Vanke may also inject hotels it owns as well as future hotels under development into BTC.

BTC will also own 40% of Banyan Tree's hotel management company in China and continue the rapid expansion of the various brands under the Banyan Tree Group namely Banyan Tree, Angsana, Cassia, Dhawa and Laguna.

Vanke will also take up approximately 5% equity stake in Banyan Tree itself, as did AccorHotels, another strategic partner with which Banyan Tree recently signed a collaboration agreement to co-develop Banyan Tree-branded hotels around the world.

Mr Ho Kwon Ping, Executive Chairman of Banyan Tree Holdings Limited, said: "We are excited to partner with Vanke, one of the largest real estate developers in China. As China's economy matures, domestic and outbound tourism is set to boom, and many property developers are venturing into hospitality and tourism. China's demography is also prompting serious interest in senior-living and active-ageing communities as part of a global trend towards wellness. This is an area which both Banyan Tree and Vanke have experience and interest, and together we can do a lot more in China and the rest of the world."

Mr Yu Liang, President of China Vanke Co Ltd, said: "Vanke is not only one of the largest real estate developers in China, but also one with a reputation for integrity, quality and innovation. These values are also shared by Banyan Tree and we believe that going forward, there will be many synergies. We have over 9 million homeowners who keep in close touch with us, and they will be a big market for Banyan Tree hotels. We have many mixed-use urban projects which could take on a Cassia or Dhawa. And we also have many senior-living and active-ageing projects where Banyan Tree's award-winning wellness experience can provide new joint opportunities."

ABOUT CHINA VANKE CO LTD

China Vanke Co., Ltd. ("Vanke") is a leading real estate company in China since it stepped into the housing market over thirty years ago in 1988, with its main business being real estate development and property service. Adopting the strategy of focusing on city clusters, Vanke has already covered 66 cities in mainland China, mainly in the Pearl River Delta centered on cities of Guangzhou and Shenzhen, the Yangtze River Delta centered on Shanghai, the Bohai Rim Region centered on Beijing, and the Chengdu Region which covers major cities in Midwest China. And since 2013, Vanke made its attempts to invest overseas. It has now been involved in dozens of real estate development projects in Hong Kong, Singapore, San Francisco, New York City and London. Vanke delivers its property service business mainly through Vanke Property Development Co., Ltd., which always regards the firstclass property service and building maintenance as the essence of running business, actively implement marketization, and provide excellent residential service for more clients. So far, Vanke Property had near a thousand property service projects in 64 large- and medium-sized cities in mainland China, covering a contractual property management area of over 210 million square meters. www.vanke.com

ABOUT BANYAN GROUP

Banyan Group ("Banyan Tree Holdings Limited" or the "Group" - SGX: B58) is an independent, global hospitality company with purpose. The Group prides itself on its pioneering spirit, design-led experiences and commitment to responsible stewardship. Its extensive portfolio spans across 70 hotels and resorts, over 60 spas and galleries, and 14 branded residences in over 20 countries. Comprising 12 global brands, including the flagship brand Banyan Tree, each distinct yet united under the experiential membership programme withBanyan. The founding ethos of "Embracing the Environment, Empowering People" is embodied through the Banyan Global Foundation and Banyan Management Academy. Banyan Group is committed to remaining the leading advocate of sustainable travel, with a focus on regenerative tourism and innovative programmes that elevate the guest experience.

For more information about Banyan Group, visit www.groupbanyan.com.