Shares in Murano Global Investments (NASDAQ:MRNO) stock, a Mexican hotel developer, jumped 130% overnight after its merger with Special Purpose Acquisition Company (SPAC) HCM Acquisition Corp was completed.
Murano is based in London but owns hotels in Mexico City and Cancun, with more rooms on the way. Warrants for its stock are also available in the public market under the ticker symbol MRNOW (NASDAQ:MRNOW).
Murano stock was trading at about $23 per share as trading opened in New York, a market cap of about $180 million.
Inside Murano
Murano is a resort hotel developer. Its Mexico City hotel is operated under the Hyatt and Accor names. The company is also opening a resort in Cancun under the Hyatt brand.
It’s the Cancun project that’s the most interesting.
A proxy statement on file with the Securities and Exchange Commission (SEC) lists the Mexico City property as having 396 rooms. The Cancun property will eventually have 3,016 rooms in two towers. The first tower is due to open in the current quarter, and the second is due to open in 2027. There’s also a “Dreams Chateau” on the property due for completion in 2027. The document lists Murano’s net income at $18 million in 2022, based on a gain in the project’s value.
Shawn Mathews, who runs the SPAC merging with Murano, is a former CEO of Cantor Fitzgerald. He now runs his own hedge fund, Hodius Capital Management.
Murano Chairman Elias Sacal Cababie has been involved in Mexican tourism for 20 years. He and CEO Marcos Sacal Cohen bought apartments in New York’s Trump Tower in 2015, offering them for sale two years later. A RealtyHop search does not record the apartments as having been sold.
The merger was first agreed to a year ago. The proxy statement filed with the merger identifies the elder Sacal as a resort developer and notes the younger Sacal has experience running technology companies.
MRNO Stock: What Happens Next?
The value of Murano will depend on the financing and completion of the Cancun project and its successful operation.
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
