Dive Brief:
- Seibu Prince Hotels Worldwide, one of Japan’s leading hospitality operators, will acquire Ace Group International, the parent company of Ace Hotels, and its in-house creative agency, Atelier Ace, the Tokyo-based company announced Tuesday.
- Seibu Prince will pay approximately $90 million to acquire Ace, which will operate as a subsidiary of Seibu’s hotel division “while retaining independence in brand and creative direction,” according to the release. The company expects the deal to close by the end of this month.
- Seibu’s acquisition of Ace adds an internationally recognized lifestyle brand to its portfolio, “a significant step” in its long-term strategy to expand its global portfolio to 250 hotels by 2035, per the company.
Dive Insight:
Ace’s portfolio currently comprises eight hotel properties, including U.S. locations in New York, Seattle and Palm Springs, California. The brand is currently developing Ace Hotel Fukuoka, its second hotel in Japan, slated to open in 2027.
The acquisition agreement capitalizes on Seibu Prince’s “global infrastructure and disciplined operational platform to underpin Ace's growth strategy, while [Seibu] benefits from Ace's demonstrated expertise in branding, design, and cultural placemaking,” per the announcement.
The partnership “provides the platform to accelerate expansion, strengthen our market presence, and deliver long-term value, while staying true to Ace's distinct hospitality model rooted in cultural engagement and creative expression,” Ace Hotels CEO Chris Penn said in a statement.
Seibu Prince currently operates 86 hotels, 31 golf courses and 10 ski resorts globally.
"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,” said Yoshiki Kaneda, the company’s president and CEO, in a statement. “By combining these strengths, we can expand faster and more effectively together."
Penn was named Ace Hotels’ CEO in January.
Marriott International also acquired a lifestyle brand this year with its $355 million buy of CitizenM.
