UK hotel group, Anglo-Indian group raise £40m fund

The UK budget hotel group Travelodge has teamed up with Meghraj to attract capital for a property fund that will acquire struggling hotels.

Anglo-Indian firm Meghraj has joined forces with UK hotel group Travelodge to raise £40 million (€46 million; $64 million) for a fund to invest in property.

According to the Times, Travelodge will use the funds to buy struggling hotels in mature town and city centre locations.

Paul Harvey, managing director, is quoted as saying: “We have tested the water and believe there will be appetite for this.”

Travelodge and Meghraj will each invest £500,000 and will seek to raise a further £40 million of equity and combine this with debt to give it £100 million purchasing power.