Thomas Cook Hotel Investments is to acquire a 250-room hotel in the Canary Islands and a 300-room property in the Balearics after finalising €51 million in financing.
The second round of debt funding through Spanish bank CaixaBank takes the total raised in the last three months to €91 million, following an initial tranche of €40 million from Piraeus Bank.
The funds will be used to invest in opportunities in Spain and around the Mediterranean.
The seven hotels in the fund now take the total asset value to around €250 million and 2,200 rooms.
The fund aims to comprise ten to 15 hotels within the next two years.
A pipeline of further hotel acquisitions has been identified and the team is focused on executing an expansion plan over the coming year, according to the Thomas Cook joint venture with LMEY Investments.
TCHI was established last March to support the growth of Thomas Cook’s own-brand hotel portfolio as part of a strategy of achieving greater control over its hotel inventory and customer experience.
The hotel fund aims to acquire underperforming, distressed and under-invested hotels in core destinations and transform them into own-brand hotels.
Thomas Cook Hotels & Resorts chief Enric Noguer said: “This new round of funding is a big step forward for TCHI, providing us with support to accelerate our acquisition programme in our biggest holiday destination.
“The fund’s flagship hotel, Casa Cook Ibiza, opens this summer and with this new funding we’ll be able to create further top-class hotels and holidays for our customers.”
More: Video: Thomas Cook targets younger generation in new TV ad
Thomas Cook faces legal action after mum injured by ‘obese woman’