Thomas Cook’s hotel investment fund has secured €40million to acquire properties in the Mediterranean.

The funding is being provided by Greece’s largest bank, Piraeus, and will be particularly focused on, but not exclusive to, buying properties in the Greek islands.

Cook’s hotel fund was set-up with Swiss-based hotel property development company, LMEY Investments, in March to buy under-performing or distressed hotels and turn them into own-brand properties.

The fund currently includes hotel properties in Rhodes, Crete, Mallorca, Ibiza and mainland Spain. It will open a fifth Casa Cook property in Ibiza next summer using the fund.

Enric Noguer, chief of hotels and resorts, said: “This first tranche of funding is an important step to help us accelerate the growth of our hotel fund.

“In acquiring more hotels that we fully manage, we aim to generate better returns for the group and deliver higher customer satisfaction. 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.”