A Canadian investment firm backed out of acquiring five hotels via a SPAC and pivoted to an air-purification startup as its qualified acquisition, the Commercial Observer reports.
VM Hotel Acquisition Corporation, a SPAC sponsored by VCM Global Asset Management, was launched in January 2021 with the goal of acquiring distressed hotel assets, according to its prospectus.
In particular, VMH — led by veteran real estate executives — planned to focus on hotels in city centers that had been hurt by the COVID-19 pandemic but would, in time, rebound.
By December 2021, the company had negotiated the purchase of a five-hotel portfolio as its qualifying acquisition, according to an announcement from the company. The portfolio included four hotels in the U.S. and one in Canada for a total cost of $411 million. Read more.