Japan-based Seibu Prince Hotels Worldwide is buying Ace Group International, parent company of the Ace Hotel brand and in-house creative agency Atelier Ace, for $90 million.
Ace Hotel will operate as a division of SPW’s newly created U.S. subsidiary, Ace Hotels Worldwide, and it will retain independence in brand and creative direction, according to a news release. The deal is expected to close by the end of September.
"Today marks an important milestone in SPW's journey to become a truly global hotel group with Japanese roots," SPW President and CEO Yoshiki Kaneda said in the release. "Ace Hotel brings a distinctive cultural spirit that perfectly complements our portfolio. By uniting Ace's pioneering approach with SPW's heritage of omotenashi, the Japanese art of genuine hospitality, and our global footprint, we are creating a hospitality group that is authentic and globally trusted."
SPW is a Tokyo-based hospitality company that is part of the Seibu Group, a holding company that operates in multiple sectors, including real estate, recreation, urban transportation and sports management. Its hospitality portfolio of 86 hotels, 31 golf courses and 10 ski resorts has a presence in Japan, Singapore, Bahrain and the U.S. The property types include luxury urban hotels and ryokans as well as ski resorts and golf retreats. It has a long-term strategy to have a portfolio of 250 hotels globally by 2035.
Founded in Seattle in 1999, the boutique Ace Hotel brand portfolio includes eight properties, including the Ace Hotel New York, Ace Hotel Kyoto and Ace Hotel Brooklyn. It recently opened the Ace Hotel & Swim Club Athens. The brand company is developing the Ace Hotel Fukuoka, set to open in 2027, and has plans to expand across North America, Asia and Europe.
The deal will result in SPW and Ace together operating 94 hotels worldwide with another seven in the pipeline. It will also bring SPW’s loyalty program, Seibu Prince Global Rewards, to all Ace Hotel properties.
Ace Hotel was nearly acquired in 2023 when hospitality investment firm Sortis Holdings attempted to buy Ace Group International for $85 million in an all-cash deal. The deal fell apart, however, and both parties filed and settled lawsuits over the sale before they called it off.
Earlier this year, Ace Hotel Group and Atelier Ace named Chris Penn as its new CEO. Penn is the founder of lifestyle hospitality company and consultancy Do^2 and was previously the managing director of the now-closed Ace Hotel London from 2013 to 2016.