Starwood Capital and Jaws plan public listing via merger
Investing.com | Editor Brando Bricchi
Published Mar 08, 2024 02:16PM ET
MIAMI BEACH, Fla. - Investment affiliates of Starwood Capital Group, which hold interests in a range of hotel properties, and Jaws Mustang Acquisition Corp (NYSEA: JWSM), a special purpose acquisition company, announced today their intention to merge, leading to a public listing on a national securities exchange. The non-binding letter of intent outlines a business combination that would result in the direct or indirect acquisition of Starwood Capital's interests in a portfolio of hotels, including the 1 Hotels in Manhattan and Brooklyn and the De Vere Portfolio in the United Kingdom.
The 1 Hotels brand, established by Starwood Capital's Chairman and CEO Barry Sternlicht in 2015, is known for its luxury lifestyle hotels with a strong emphasis on environmental sustainability. The brand has seen rapid growth, with 11 operating properties and 8 under development globally. The De Vere Portfolio comprises historic country estates in the UK, offering a blend of traditional hospitality and modern amenities.
The initial portfolio of ten properties, which includes the 1 Hotel Brooklyn Bridge and the 1 Hotel Central Park, reported a net operating income of $52 million for the year ended December 31, 2023, and is projected to earn $62 million by the end of 2024. Management of these properties will remain with SH Group Hotels & Residences U.S., LLC for the 1 Hotels and the internal team for the De Vere Portfolio.
While the parties aim to finalize a definitive business combination agreement in the upcoming weeks, they caution that there is no certainty of a final agreement or completion of the transaction, which is subject to investor, third-party consents, and regulatory review by the SEC and a national securities exchange.
Starwood Capital Group is a prominent private investment firm focused on global real estate, with approximately $115 billion of assets under management. Jaws, led by Barry S. Sternlicht and CEO Andrew Klaber, is designed for mergers and acquisitions of businesses or entities.
This announcement is based on a press release statement and does not serve as a substitute for any future definitive agreement or other documents related to the potential business combination. The completion of this transaction is subject to various contingencies and conditions. Further details will be disclosed once a definitive agreement is reached.
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