Jaws Mustang Acquisition Corporation Suspends Pursuit of Hospitality Business Combination

Rhea-AI Summary

Jaws Mustang Acquisition (JWSM) has suspended its previously announced hospitality business combination plans. The company had entered into a non-binding letter of intent with Starwood Capital Group on March 8, 2024, regarding a portfolio of hotels including the 1 Hotel Central Park in Manhattan. However, Starwood Capital accepted an offer from Host Hotels & Resorts (HST) to purchase the 1 Hotel Central Park, with the acquisition completed on July 31, 2024. JWSM has been unable to identify suitable replacement hotel properties for the portfolio and has consequently suspended the business combination pursuit.

Positive

• None.

Negative

• Failed business combination attempt with Starwood Capital Group
• Loss of key target asset (1 Hotel Central Park) to competitor Host Hotels & Resorts
• Unable to identify suitable replacement properties for the portfolio

News Market Reaction – HST

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+0.35% News Effect

On the day this news was published, HST gained 0.35%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

MIAMI BEACH, Fla., Nov. 1, 2024 /PRNewswire/ -- Jaws Mustang Acquisition Corporation (NYSEA: JWSM), a special purpose acquisition company ("Jaws"), has suspended pursuit of its previously announced hospitality business combination. On March 8, 2024, Jaws entered into a non-binding letter of intent ("non-binding LOI") with investment affiliates of Starwood Capital Group (collectively, the "Starwood Capital Entities") that owned interests in a portfolio of hotels (the "Initial Portfolio"), including the 1 Hotel Central Park in Manhattan ("1 CP"), for a potential business combination. Subsequently, the Starwood Capital Entities received an offer from Host Hotels & Resorts, Inc. (NYSE: HST) to purchase the 1 CP on terms which the Starwood Capital Group Entities concluded were in the best interest of their investors to accept. HST's acquisition of the 1 CP was consummated on July 31, 2024. To date, Jaws has not identified one or more additional hotel interests that would constitute a suitable replacement for the 1 CP in the Initial Portfolio. At the present time, Jaws has suspended further pursuit of such previously announced hospitality business combination.

About Jaws

Jaws, led by Chairman Barry S. Sternlicht and Chief Executive Officer Andrew Klaber, is a special purpose acquisition company incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities.

View original content:https://www.prnewswire.com/news-releases/jaws-mustang-acquisition-corporation-suspends-pursuit-of-hospitality-business-combination-302294482.html

SOURCE JAWS Mustang Acquisition Corporation

FAQ

Why did JWSM suspend its hospitality business combination in 2024?

JWSM suspended the business combination because Starwood Capital Group sold the key property (1 Hotel Central Park) to Host Hotels & Resorts, and JWSM couldn't find suitable replacement properties for the portfolio.

When did Host Hotels & Resorts acquire 1 Hotel Central Park from Starwood Capital Group?

Host Hotels & Resorts completed the acquisition of 1 Hotel Central Park from Starwood Capital Group on July 31, 2024.

When did JWSM enter into the non-binding LOI with Starwood Capital Group?

JWSM entered into a non-binding letter of intent (LOI) with Starwood Capital Group on March 8, 2024.