Investment groups connected with Starwood Capital Group and Jaws Mustang Acquisition Corp are thinking about combining their businesses. If they go ahead with the plan, they would create a new company that would be listed on a stock exchange.
The Starwood Capital Entities own several hotels, including the 1 Hotels properties in Manhattan and Brooklyn, and the De Vere Portfolio in the United Kingdom. 1 Hotels are luxury hotels designed with a focus on environmental sustainability, created by Barry Sternlicht, the CEO of Starwood Capital Group. The De Vere Portfolio consists of historic country estates and ancestral family seats in the UK, renovated to accommodate modern living and events.
Under the plan, the new company would own ten properties, including the mentioned 1 Hotels and De Vere Portfolio. These properties generated $52 million in profit in 2023, and it’s expected to increase to $62 million in 2024. The management of the 1 Hotel properties and the De Vere Portfolio would remain as they are. The new company also plans to acquire more hotels, especially those under the 1 Hotels brand.
The deal is still in the early stages, and there’s no guarantee that it will happen as planned. Both parties need to finalize the agreement, and it’s subject to approval from investors and regulatory bodies like the Securities and Exchange Commission.
Key Points:
- Introduction of Business Combination: Investment groups linked with Starwood Capital Group and Jaws Mustang Acquisition Corp are considering merging their businesses. This would result in the formation of a new company that would be listed on a stock exchange.
- Description of Current Holdings: The Starwood Capital Entities own various hotel properties, including the 1 Hotels in Manhattan and Brooklyn, and the De Vere Portfolio in the UK. The 1 Hotels are known for their luxury and environmental sustainability focus, while the De Vere Portfolio consists of historic UK estates renovated for modern use.
- Details of the Proposed Combination: The new company resulting from the merger would possess ten properties, including those mentioned above. These properties earned $52 million in profit in 2023, expected to rise to $62 million in 2024. Management of the existing properties would remain unchanged.
- Future Plans: The new company plans to acquire more hotels, particularly those under the 1 Hotels brand.
- Uncertainties and Conditions: The merger is still in its initial stages, and there’s no guarantee it will proceed. Both parties must finalize the agreement, and regulatory bodies like the Securities and Exchange Commission need to approve it.
About Starwood Capital Entities
The Starwood Capital Entities are groups that invest money for Starwood Capital Group, a private company that mainly deals with real estate around the world. The company and its partners have offices in 16 places across seven countries, and they have more than 5,000 workers. Since it started in 1991, Starwood Capital Group has gathered over $75 billion from investors, and it currently manages about $115 billion in assets. They invest in many types of real estate all over the world, changing what they invest in based on how risky it seems.
Starwood Capital also manages Starwood Property Trust, which is the biggest real estate investment trust in the United States. Since it began, it has put more than $95 billion into projects and currently manages over $27 billion in investments. For the past 32 years, Starwood Capital Group and its partners have been successful in both private and public investment markets by creating and growing businesses.
About Jaws
Jaws (NYSEA: JWSM) is a company led by Chairman Barry S. Sternlicht and Chief Executive Officer Andrew Klaber. It’s a special kind of company based in the Cayman Islands. Their main goal is to join forces with other businesses or entities through mergers, share exchanges, or similar deals.
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