Ace acquired by Seibu Prince

TOKYO – Japan’s Seibu Prince Hotels Worldwide (SPW) has agreed to acquire Ace Group International, its eight-property (1,400 rooms) Ace Hotel brand and in-house creative agency Atelier Ace for $90 million. Ace will operate as a U.S.-based subsidiary of SPW, retaining independence and creative direction, when the deal closes, which is expected to be by the end of September.

Ace’s eight hotels include locations in Manhattan, Brooklyn, Kyoto and Athens, while the brand’s pipeline projects include a Fukuoka property scheduled to open in 2027.

The fit between our two companies is powerful. Seibu Prince brings scale, infrastructure, and development expertise across Asia Pacific and the Middle East, while Ace has deep credibility and a proven track record in North America and Europe. By combining these strengths, we can expand faster and more effectively together.

Yoshiki Kaneda

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The combined companies will operate 94 hotels worldwide with seven more in the pipeline as Seibu Prince strives to reach 250 hotels globally by 2035. The company currently operates 86 hotels, 31 golf courses and 10 ski resorts in Japan, as well as the U.S., U.K., Singapore, Australia and Dubai.

Another lifestyle brand becoming a bolt-on buy for a major hotelier, this deal was first rumored in July when a Bloomberg report a possible deal for as much as $85 million, including earn-outs. Ace reportedly was working with Jones Lang LaSalle to explore strategic options.

“The fit between our two companies is powerful,” said SPW President and CEO Yoshiki Kaneda. “Seibu Prince brings scale, infrastructure, and development expertise across Asia Pacific and the Middle East, while Ace has deep credibility and a proven track record in North America and Europe. By combining these strengths, we can expand faster and more effectively together.”

Ace Hotel CEO Chris Penn said the deal give Ace a new platform to accelerate expansion. It also offers much-needed stability after the chic lifestyle brand founded in Seattle in 1999 saw a $85 million, 2023 deal with asset manager Sortis Capital fall apart amid rising interest rates, management attrition and shifting market conditions.

Ace Hotel Chairman Brad Wilson said, “We’re honored to join Seibu Prince Hotels Worldwide. Over the past decade, we've grown the Ace brand globally while staying true to our founding principles: transforming historic buildings, contributing to neighborhood revitalization, and creating places that honor culture and community. Seibu Prince shares these values, and with their strategic vision and international reach, we can continue to safeguard Ace's independent spirit while taking the brand to new heights.”

Seibu Prince has been active in the deal market last year selling the Tokyo Garden Terrace Kioicho complex to Blackstone for $2.6 billion while maintaining management of the 250-key Prince Gallery Tokyo Kioicho hotel. Three years ago, it sold 15 Prince hotels and 16 additional leisure properties in Japan for $1.3 billion to Singapore sovereign fund GIC, while again retaining management.