Hotel entrepreneur Olivier de Geffrier is to form a new group of ten hotels in Paris, France.

De Geffrier said he is buying existing hotels because of difficulties in building new properties in the city due to urban development restrictions.

The Paris-based entrepreneur will manage the hotels on behalf of investors.

De Geffrier expects Paris to experience a shortfall of hotels despite the opening of five new luxury properties, including the Mandarin Oriental and Royal Monceau Raffles, during 2010-11.

He did not reveal the size of the investment.