Pramerica Real Estate Investors and Paris Inn Group said on Monday that they are joining forces to invest in Paris hotels and have already acquired two first assets for more than EUR 30 mln.

The new Luxembourg based JV, Capital Inn S.à.r.l., has a total investment capacity of around EUR 60 mln and will target central and western Paris hotels that have the potential for capital growth.

'Due to consumer demand for modern product outstripping supply at present, the Paris hotel sector is one that we have identified as offering strong value potential,' said Philip Barrett, managing director of Pramerica. The two partners will seek to create value by improving operating performance through Paris Inn Group's asset management expertise, coupled with selected refurbishment. The initial portfolio includes two 3-star and 4-star hotels located in Paris and comprising more than 150 rooms.

Pramerica's London-based Merchant Banking Group structured the investment on behalf of institutional investors in its PRECO IV fund.

Paris Inn Group is an asset manager and investment advisor specialising in the independent hotel sector. Established in Paris since 1923, it currently manages 23 three or four-stars hotels through its commercial brand Book Inn France and is led by president Jean Bernard Falco.