Foncière des Murs (FdM) and Predica have stepped up their partnership in the hotel sector with a major property acquisition in France. The pair have signed a memorandum of understanding with Louvre Hôtels to acquire a portfolio of 33 Campanile hotels for EUR 173 mln.

FdM is the hotel arm of listed French real estate company Fonciere des Regions, while Predica is part of Credit Agricole group.

The 80/20 joint venture of Predica and FdM has agreed to carry out a EUR 38 mln programme to renovate all the hotels. A guaranteed minimum rent will be charged for the entire portfolio throughout the work.

The portfolio comprises a total of 2,453 rooms. Some 45% of the properties are in the Paris metropolitan area, 32% are in southern France and 23% in the north of the country.

Louvre Hôtels group will continue to own the business rights and to operate the hotels under the Campanile brand. The group has signed a 12-year lease, renewable six times.

The operation comes just six months after Predica and FdM's purchase of an Accor hotel portfolio for EUR 378 mln. The latest deal, to be finalised in the second quarter of 2011.