Thomas Cook hotel JV secures €51m of debt funding, buys new assets

Travel company Thomas Cook said its hotel fund joint venture with LMEY Investments had borrowed €51m from from CaixaBank, marking its second round of debt funding.

The funding took the total amount raised by the venture in the last three months to €91m, following an initial €40m tranche provided by Piraeus Bank.

The capital would be used to invest in opportunities in Spain and around the Mediterranean.

Thomas Cook also announced that the venture had agreed to acquire a 250-room hotel in the Canary Islands, as well as another 300-room hotel in the Balearics, for an undisclosed sum

The seven hotels in the fund now took its asset value to around €250m, with 2,200 rooms.

It fund was aiming to comprise 10-15 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,' Thomas Cook said.

At 2:07pm: (LON:TCG) Thomas Cook Group PLC share price was -1.48p at 33.14p