Trio invests in French chain

Hotel group Accor has joined with US investment funds Blackstone Group and Colony Capital to buy the hotel division of French utilities company Vivendi for Ffr3.1b (£544m).

The operation covers 52 hotels with 3,160 rooms, mostly under the brands Demeure and Libertel. It includes 34 three- and four-star Libertel sites in Paris, five in the provinces and one in Brussels.

Five-star hotels under the Demeure brand include eight in Paris, such as the Astor and Le Parc; the Grand in Amsterdam, Holland; the Hotel d'Angleterre in Geneva, Switzerland; and the 52-bedroom 47 Park Street Hotel in London's Mayfair.

Both the Libertel and Demeure properties will retain their brand names but will be marketed through Accor's Mercure and Sofitel chains respectively.

The deal gives Accor a 30% stake in the venture and a stronger position in the Paris hotel market, where suitable properties have become scarce. "It's a good deal for us. There aren't too many opportunities in Paris," said a spokeswoman.

The venture also marks the latest move into Europe by Blackstone, which bought the Savoy Group last year.