October 28, 2014 / 12:06 PM / 5 years ago

France's Accor invests in Mama Shelter boutique hotels

* Accor buys 35 pct stake in Mama Shelter hotels

* Mama Shelter aims to open about 20 hotels over next 5 years

By Dominique Vidalon

PARIS, Oct 28 (Reuters) - Europe’s largest hotel group, Accor, said it bought a 35 percent stake in Mama Shelter to help speed up the international expansion of the French boutique hotel chain.

Founded in 2008 by the Trigano family, also behind the birth of all-inclusive holiday pioneer Club Med, Mama Shelter said it aims to open some 20 hotels worldwide over the next five years, including one in Los Angeles in February.

The financial terms of the deal were not disclosed, but Mama Shelter founder Serge Trigano told Reuters on Tuesday that opening a hotel costs between 15 million and 25 million euros.

Mama Shelter currently has five hotels - in Paris, Bordeaux, Lyon, Marseille and Istanbul - totalling 633 rooms and employing 450 people. It is targeting 2014 revenue of over 35 million euros ($44.4 million), Trigano said.

Mama Shelter, whose hotels and restaurants are designed by Philippe Starck, aims to offer what it describes as “urban retreats” on a budget in atypical and often non-touristic neighborhoods to young people, business travellers and families.

The average price of a hotel room is about 130 euros per night in Paris and 100 euros elsewhere.

Mama Shelter’s expansion plans include a second hotel in Paris, one in Lille, in northern France, and others in Zurich, Mexico City, Seoul, Amsterdam, Barcelona, New York and London.

The Trigano family will retain a stake of about 38 percent in Mama Shelter, with French businessman Michel Reybier holding the balance, Trigano said.

The investment allows Accor to add a boutique chain to its 14 brands ranging from budget Ibis to luxury Sofitel hotels. (1 US dollar = 0.7877 euro) (Editing by James Regan)

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