Investment entities affiliated with Starwood Capital and special purpose acquisition company Jaws Mustang have signed a non-binding letter of intent for a potential business combination.
Under the terms of the letter of intent, the combined public company will own the Starwood Capital Entities' interests in 195-key 1 Hotel Brooklyn Bridge, 234-key 1 Hotel Central Park and eight properties in the De Ver portfolio, namely the 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, and De Vere Grand Connaught Rooms, totalling 1,871 guest rooms and suites.
The properties earned net operating income of $52 million in 2023 and are expected to earn net operating income of $62 million in 2024.
The 1 Hotel Brooklyn Bridge and the 1 Hotel Central Park will continue to be externally managed by SH Group Hotels & Residences, and the De Vere Portfolio will continue to be managed by its internal operational team. The combined public company will seek to acquire additional hotels, including 1 Hotels properties.