COLONY Capital LLC and Eurazeo said yesterday that they plan to increase their stake in Accor SA, Europe's biggest hotel owner, to 30 percent.

According to Bloomberg News, Accor shares rose in Paris trading.

Eurazeo, a Paris-based private-equity firm, wants to raise its stake to 10 percent "in the months to come, by the end of the year at the latest," and will seek board representation, chief financial officer Philippe Audouin said yesterday. Los Angeles-based Colony Capital plans to boost its own holding in the coming months to about 20 percent through purchases in the market, the companies said, adding that they don't intend to take control of Accor.

"Colony Capital and Eurazeo's increased stakes demonstrate their confidence in the management team and their strategy, the group's potential for value creation and the strength of its assets," the companies said in a statement.

Accor shares rose as much as 2.15 euros, or 4 percent, to 56.30 euros and traded at 55.57 euros, reaching their highest level this year. Accor had the largest gain yesterday in France's benchmark CAC 40 Index. The Paris-based company has a market value of 12.8 billion euros (US$19.8 billion).

Eurazeo will directly own 8.5 percent of Accor, which operates the Pullman and Ibis hotels, on May 13, representing a total investment of 1.08 billion euros, Audouin said. Eurazeo wants a "consistent and coherent" representation on Accor's board of directors, "in line with that of other large shareholders," he said.

Accor said the investors must first confirm their support for the company's strategy and guarantee not to launch a takeover bid before it will grant board seats.