Investment entities affiliated with US-based Starwood Capital Group (Starwood Capital Entities), along with Jaws Mustang Acquisition, have signed a non-binding letter of intent (LOI).
The LOI aims for a prospective business merger, forming a combined public company that will be listed on a national securities exchange.
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It outlines that the potential business combination would assume direct or indirect ownership of the Starwood Capital Entities’ stakes in ten properties (initial portfolio).
These properties include the eco-conscious 1 Hotel Brooklyn Bridge and 1 Hotel Central Park, as well as eight historic country estates in the De Vere Portfolio.
1 Hotel Brooklyn Bridge consists of 195 guest rooms and suites, while 1 Hotel Central Park in Manhattan has 234 guest rooms and suites.
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1 Hotels is a luxury lifestyle brand that integrates environmental sustainability with high-end guest experiences.
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By GlobalDataThe brand includes 11 operating properties and another eight in development across Europe, North America, and Asia Pacific.
The De Vere Portfolio, acquired by Starwood Capital Group’s investment affiliates, spans several locations in the UK.
The properties include De Vere Wokefield Estate, De Vere Latimer Estate, De Vere Beaumont Estate, De Vere Cranage Estate, De Vere Horsley Estate, and more.
These properties comprise 1,871 guest rooms and suites.
The initial portfolio is projected to generate a property-level net operating income (NOI) of $62m by the end of 2024.
The management of the properties will remain with SH Group Hotels & Residences for the 1 Hotels in New York, and the De Vere Portfolio will continue with its internal operational team.
The combined public company aims to further expand its hotel acquisitions, including additional 1 Hotels properties.
Starwood Capital Entities and Jaws are working towards finalising a definitive business combination agreement and will disclose further details in the forthcoming weeks.
However, the companies noted that there is no certainty that a definitive agreement will be reached or that the proposed transaction will be completed as currently planned, or at all.
Santander US Capital Markets is providing equity capital markets advisory and financial advisory services to Jaws.
This January, Starwood Capital confirmed the acquisition of a portfolio of ten hotels from the Edwardian Group in a discreet off-market transaction.
