Investment entities affiliated with Starwood Capital Group and Jaws Mustang Acquisition Corp have entered into a non-binding letter of intent for a potential merger to create a publicly traded hospitality company. The proposed merger is intended to combine Starwood's portfolio of luxury hotels, including the 1 Hotels properties, with Jaws' special purpose acquisition expertise.
Under the terms of the letter of intent, the merged public company would become the direct or indirect owner of Starwood Capital Entities' interests in ten properties comprising the initial portfolio.
This portfolio includes 1 Hotel Brooklyn Bridge and 1 Hotel Central Park in Manhattan, as well as the De Vere properties, which are spread across eight historic estates and country houses located in various parts of London, both central and suburban, as well as in the south and north of England. Together, these properties offer a total of 1,871 rooms and suites:
- De Vere Wokefield Estate
- De Vere Latimer Estate
- De Vere Beaumont Estate
- De Vere Horsley Estate
- De Vere Cranage Estate
- De Vere Tortworth Court
- De Vere Cotswold Water Park
- De Vere Grand Connaught Rooms
The initial portfolio is estimated to generate $52 million of net operating income (NOI) at property level for the year ended 31 December 2023, with a projected NOI of $62 million for the year ended 31 December 2024. The management agreements for 1 Hotel Brooklyn Bridge, 1 Hotel Central Park and the De Vere portfolio will continue in accordance with existing agreements.
The proposed merger represents a strategic move to capitalise on the growing demand for luxury hospitality, with plans for further expansion through the acquisition of additional hotel properties, including those under the 1 Hotels brand.
The potential merger between Starwood Capital Entities and Jaws Mustang Acquisition Corp represents an important step towards the creation of a publicly listed hotel company. By leveraging their combined assets and expertise, the combined entity aims to strengthen its position in the luxury hotel sector while continuing to pursue strategic growth opportunities.
