Accor is in talks to invest up to US$50 million in Indian budget hotels company Treebo Hotels, Live Mint reports.
Quoting an anonymous source, the report said Accor had put up a term sheet for a minority stake in Treebo, and that both parties are in advance stages of discussion.
If the deal goes through, it will also give Accor the right to acquire a majority stake in Treebo at a later date, he said.
In 2017, Hong Kong-based investment firms Ward Ferry Management and Karst Peak Capital led a US$34 million investment in Treebo, which also saw participation from its existing investors Bertelsmann India Investments, Matrix Partners, and SAIF Partners.
To date, Treebo has raised more than US$55 million.
Live Mint quoted another source, who said the Treebo network has grown at a fast pace, from over 70 since its most recent financing in 2017 to around 500 today.
In October, Live Mint reported that Treebo and FabHotels had entered merger talks, which is expected to help them compete against the heavily funded Oyo.
Oyo raised US$1 billion in September in a funding round led by Softbank, valuing the company at around US$5 billion.