Proposed Acquisition of Five Premier Hotels /NOT FOR DISTRIBUTION TO U.S. NEWSWIRES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, Dec. 7, 2021 /CNW/ - VM Hotel Acquisition Corp. (TSX: VMH.U) (TSX: VMH.WT.U) ("VMH"), a special purpose acquisition company ("SPAC"), today announced its proposed qualifying acquisition (the "Qualifying Acquisition") of a US$411 million portfolio of five premier hotels, consisting of 2,079 keys in four cities and two countries, to create an initial cross-border North American portfolio of high-quality hotel properties (the "Initial Portfolio"). Following the Qualifying Acquisition, VMH will be a publicly-traded real estate operating company ("REOC"), allowing investors to participate in a long-term real estate strategy of acquiring and growing a portfolio of high quality, iconic and well-located upper-upscale and luxury North American hotel and resort properties at a discount to their stabilized values and replacement costs.
The US$411 million purchase price is expected to be funded through a combination of approximately US$260 million of mortgage financing and US$20 million raised through the issuance of VMH shares to a vendor, with the remaining portion funded through cash on hand and the PIPE Investment (as defined below).
Ian McAuley, VMH's President and CEO, said, "We are excited to announce the Qualifying Acquisition, which, upon closing, will allow our shareholders to participate in the unique buying opportunity created by the COVID-19 pandemic to acquire high quality hotels at significant discounted prices relative to their intrinsic value and replacement cost. Following closing of our Qualifying Acquisition, we believe that our REOC structure will offer investors private equity-like returns and liquidity of the public capital markets, while we continue to invest in the rebound of the hotel industry".
VMH's Executive Chair, Tom Vukota, added, "As a publicly-listed REOC targeting the upper-upscale and luxury hotel segment, we believe VMH will be uniquely positioned to consolidate the space and transact on an expected significant pipeline of follow-on U.S. and Canadian acquisitions the company expects to pursue post-closing".
Initial Portfolio Highlights
High-Quality, Irreplaceable Assets – The hotels in the Initial Portfolio, set out below, are upper-upscale and luxury properties that are well-positioned within their respective competitive sets and located within stable markets with significant high barriers to entry for new competitors. All of the hotels are currently operating and together comprise 2,079 keys in four cities – Boston, Massachusetts, Cleveland, Ohio, Montreal, Quebec and Panama City Beach, Florida.
| Hotel | Location | Rooms |
| Battery Wharf | Boston, Massachusetts | 150 |
| Hyatt Regency | Cleveland, Ohio | 293 |
| The Renaissance | Cleveland, Ohio | 491 |
| Sheraton Centre | Montreal, Quebec | 825 |
| Sheraton Golf & Spa | Panama City Beach, Florida | 320 |
About VM Hotel Acquisition Corp.
VMH is a SPAC incorporated under the laws of the Province of British Columbia for the purpose of effecting a qualifying acquisition within a specified period of time. VMH's head office is located at Brookfield Place, 161 Bay Street, Suite 2420, Toronto, ON, M5J 2S1 and the registered office is located at 700 West Georgia Street, Floor 25, Vancouver, BC V7Y 1B3.