US investment company Waldeck Capital has kickstarted a €500m (£466m) fundraising campaign for an opportunistic vehicle that will buy luxury hotels in Europe and the US.


Smit: looking for hotels that are ‘active, not dying’
Smit: looking for hotels that are ‘active, not dying’

The Global Hospitality Recovery Fund, a five-year vehicle, is seeking to buy between 10 and 12 distressed luxury assets. It is also looking to buy struggling hotel companies, as the weakening tourist market puts pressure on hotel trading revenues.

Waldeck CEO Tom Smit said: ‘We are not looking to pick up an asset once the price for it has hit the floor. We want to pick up hotels that are still active, not dying. I don’t care if I pay 10% more than what someone else might pay a few months down the line.’

In Europe, Smit said Waldeck would ‘make the most of asset stripping and leveraged deal flows’, while in the US it would aim to pick up banking sector disposals.

Smit, who is also seeking to hire a team of up to 12 to manage the fund, is looking to buy luxury hotels in prime locations, and said he was ‘confident’ he would complete the first acquisition this year. ‘I am beginning to see some well priced assets in the US market, where banks were willing to negotiate deals.’