Starwood Capital Group, the US-based owner of the prestigious De Vere hotel collection, has announced plans for a strategic merger with Jaws Mustang Acquisition Corp, setting the stage for a public listing that could reshape its footprint in the hospitality industry. This move aims to bolster the presence of the De Vere brand, renowned for its historic country estates across the UK, and the 1 Hotels brand, known for luxury and sustainability, on a global scale.

The proposed merger outlines a business combination poised to transfer the ownership of Starwood Capital’s interest in a selection of hotels, including the De Vere estates in prime UK locations such as the Cotswolds, Bristol, and Chesham, alongside the 1 Hotels in Manhattan and Brooklyn.

1 Hotels, a creation of Starwood Capital’s chairman and CEO Barry Sternlicht in 2015, stands out for its commitment to eco-friendly luxury, with 11 operating sites including a presence in London, and plans for further international expansion.

The portfolio under discussion reported a net operating income of approximately £42 million in the year ending December 2023, with projections indicating a rise to about £50 million by the end of 2024. The management of these properties is set to remain under SH Group Hotels & Residences U.S., LLC for the 1 Hotels, and the De Vere’s internal team will continue to oversee its portfolio.

The merger, aimed at being finalised in the upcoming weeks, is still subject to approval from investors, the receipt of necessary consents, and the regulatory scrutiny of the SEC and a national securities exchange.

Starwood Capital Group, a leading investment firm with a focus on global real estate, manages assets worth approximately £93 billion. The partnership with Jaws Mustang Acquisition Corp, spearheaded by Sternlicht and CEO Andrew Klaber, highlights a strategic approach towards mergers and acquisitions within the sector.

Earlier this year, Starwood made headlines with the acquisition of 10 Radisson Blu Edwardian hotels in London from Edwardian Hotels, in a landmark deal valued at £800 million, underlining its ambitious expansion plans in the UK market.

Further details on the merger will be disclosed following the finalisation of a definitive agreement, marking a potentially transformative phase for Starwood Capital and its esteemed hotel brands.