Budget hotel operator Travelodge has established a joint venture with property fund manager Meghraj Properties as part of efforts to capitalise on the slump in the property market.

Called Tamesis Capital, the £100m property fund will look to acquire distressed assets from banks and administrators, as well as other hotel operators.

Chaired by Malcolm King, former senior partner at King Sturge, Tamesis has been established to purchase up to 14 hotels which will then be leased to Travelodge.

The fund is hoping to raise £40m of equity, supplemented by £60m of borrowings. So far the fund has secured £20m from Meghraj clients with Travelodge investing a further £500,000.

Paul Harvey, managing director of development at Travelodge, said: "Since last summer, we have been contacted by a substantial number of owners and administrators who have been looking to sell their hotels to us as going concerns.

"What stopped negotiations moving forward on many of the sites were the excessive valuations placed on the properties.

"Over the last two months however it has become clear that expectations on value have moved in our direction, meaning some exciting opportunities are presenting themselves."

Over the last 15 months Travelodge has acquired 13 hotels. Six of the properties were bought from hotel operator Menzies in a £85m deal last year, while another three were acquired from the administrators of the Real Hotel Company.

Meghraj Properties advises some 60 families – all of which have been investing in the UK commercial property markets for more than 35 years. It currently manages assets totalling £750m.

Meghraj also has a real estate business in India employing 3,000 people in partnership with JLL – Jones Lang LaSalle Meghraj.