French hospitality company Accor SA is in advanced discussions to acquire a stake in Indian budget hotel chain and hospitality service company Treebo Hotels.

Accor intends to invest up to $50 million to pick up a significant minority stake Treebo Hotels.

Treebo Hotels noted that the investment from Accor will be primarily used to scale up its network.

In 2017, Treebo secured $34 million in an investment round from Hong Kong-based investment firms Ward Ferry Management among others.