Thomas Cook Hotel Investments (TCHI), a joint venture between Thomas Cook and LMEY Investments, has secured the sum of 40 million euros to invest in hotels in Greece and other Mediterranean destinations. The amount is the first tranche of funding and will be provided solely by Piraeus Bank.
According to an announcement, the amount will be invested in hotel facilities located in sun and beach markets in which TCHI operates in the Mediterranean, with a particular focus on opportunities on Greek island destinations. The company also seeks further funding to acquire more properties in the Mediterranean region.
“This first tranche of funding is an important step to help us accelerate the growth of our hotel fund,” Enric Noguer, chief officer of Thomas Cook Hotels & Resorts, said.
TCHI currently includes hotels on Rhodes, Crete, Majorca, Ibiza and mainland Spain. This winter, more than 7 million euros will be invested in the Sunwing Hotel in Kallithea on Rhodes. In addition, a new Casa Cook will open in Ibiza in the summer of 2019.
Founded in March 2018, TCHI aims to expand Thomas Cook’s portfolio of own-branded hotels. Its strategy is to acquire “underperforming, distressed and underinvested” hotels, located in the group’s core destinations and transform them into own-brand hotels.
“In acquiring more hotels that we fully manage, we aim to generate better returns for the group and deliver higher customer satisfaction,” Noguer said.
“We continue to seek further funding to enable us to acquire hotels around the Mediterranean where we can bring our hotel management expertise combined with the distribution power of our tour operator,” he added.