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Ace first entered sale negotiations in early 2023 with Portland-based Sortis Holdings, which agreed to buy the brand for roughly USD $85 million. That transaction never closed, with Sortis stating that Ace lost “multiple hotel management contracts, totalling over 20 per cent of the portfolio” after the initial settlement agreement. It was also reported that Sortis faced lawsuits due to debt delinquencies, though whether this materially influenced the collapse of the deal has not been publicly confirmed.
Now, the acquisition of Ace Group by Seibu Prince Hotels Worldwide for USD $90 million shows that investor confidence has not been eroded by past circumstances. Instead, the Ace brand value is priced at a premium, supported by its established footprint in key US cities and its ultimate lifestyle positioning in the wider SPW portfolio.
After decades of organic growth, Ace will continue to operate independently under SPW, backed by the company’s global development expertise and loyalty program. The deal is expected to close by the end of September 2025, bringing SPW’s total hotel portfolio to 94 with an additional seven in the pipeline.
The landscape of independent boutique hotel brands is decisively shifting. Notable players are being absorbed by larger hospitality groups, underscoring both the challenges of scale and the competitive pressure these lifestyle concepts place on the market. I wonder what the future will hold for the boutique hotel experience?
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