Waldeck Capital, the luxury hotel developer, plans to launch a hotel investment fund with E500m to spend.

The Hospitality Recovery Fund plans to invest in luxury hotels and is raising money from institutions and individuals.

It is raising funds from a number of currencies to minimise risk and will create a portfolio of assets across different currencies, markets and countries.

Waldeck Capital, based in the US, will focus entirely on the premium end of hotels and plans to buy ‘non-performing assets’ with negative cash flow and distressed assets or those in owned by borrowers who are in breach of covenants.

Waldeck Capital is focusing on Europe, where it hopes to make the most of ‘asset stripping and leveraged deal flows’ as well as the United States.

It hopes to make its first acquisition in either the fourth quarter of 2009 or the first quarter of 2010.

Tom Smit, CEO of Waldeck Capital, said: ‘The Global Hospitality Recovery Fund is a natural development of our core business, which is luxury hotel development. The team I am assembling to head up this fund has unparalleled expertise in the field and I am confident of making our first investment before the end of the year.’