Designed by Parisian architect Roland Castro, interiors by French designer Philippe Starck and owned by Serge Trigano, ex president of the successful Club Med concept, Mama Shelter is the first of seven such projects planned for Europe.
Commentators in the property industry said they never thought the condo-hotel would suit the general sophistication of the Paris scene but leaseback has become incredibly popular in France with the Government even refunding the 19.6% VAT.
Opening in September, it is aimed at tourists and business travellers with 172 rooms. Featuring an ultra modern design described by the owners as 'daredevil' it is promising a guaranteed rental income of 4.2%.
Investors are offered a 30% discount for personal stays meaning a room will cost around €70 a night. Extra bonuses include original objects signed by Strack in all apartments, a lounge bar and restaurant. It is also in the 20th arrondissement just 20 minutes from Charles De Gaulle airport.
'I must admit I never thought the condo-hotel concept would come to Paris, it just seemed a bit too tacky for such a grand city. But this is certainly an exciting project and tickets for the launch are eagerly anticipated. It is even rumoured that the French President's wife Carla Bruni-Sarkozy will be there,' said Paris based consultant Rosie Saunders-Smith.
'This district is very up and coming, a bit like Notting Hill in London. It is full of young upwardly mobile people who like trendy styles with a touch of bohemia,' she added.
French real estate agent Geoffrey La Salle said he expects there will be a great deal of interest from investors around the world. 'Paris is such a wannabe place. These apartments are very competitively prices and I expect they will be a huge success even in the current climate,' he predicted.
'These are stylish, affordable, utterly cool, residences which mark the diversity of a city as beautiful and chic as Paris. Investors will be buying into an urban adventure with tremendous possibilities for capital growth as Paris property prices increase on average around 10/15% and in the last five years have seen a dramatic rise of 60%,' said Kate Pernacchio, Marketing Director at IMOINVEST International.