Connecticut-based property and hotel investment group Starwood Capital has bought majority stakes in French company the Taittinger Group in a deal valued at around 2.5bn euros (£1.7bn, US$3bn).

Taittinger operates the luxury hotel network Société Du Louvre and more than 800 budget hotels.

Starwood’s 65 per cent stake in the group also gives the company control of Taittinger’s champagne business, which Barry Sternlicht, chair and CEO of Starwood, is looking to sell in order to focus on growing the hotel portfolio in France and expanding into eastern Europe.

“We look forward to building on the company’s proud heritage by growing its economy hotel business in France and into new markets, particularly Eastern Europe, investing in the renovation and restoration of several of its existing jewel properties and working to extend their famous brands to new assets around the world, ” said Sternlicht.

Société Du Louvre owns and operates 14 hotels with more than 3,000 rooms in France, Switzerland and Germany, including Le Crillon and Lutétia hotel in Paris and the Martinez in Cannes.

The group operates a total of more than 51,000 rooms – with 15,940 of these owned – across the budget hotel chains Premiere Classe, Kyriad and Campanile.

Taittinger also runs the £6m Leo Casino on Liverpool’s waterfront, which sits between the group’s Dolby and Campanile hotels/

Starwood Capital is the group behind Starwood Hotels and Resorts, which owns brands such as Westin, Sheraton, W, St Regis, Luxury Collection and Four Points and is worth more than US$15bn. Details: www.starwoodcapital.com