Ace Hotel group sold to Japanese hospitality operator for £66m

Tokyo-based hospitality company Seibu Prince Hotels Worldwide (SPW) is set to acquire Ace Group International (AGI), parent company of Ace Hotel, in a £66m ($90m) deal.

The sale is expected to close by the end of this month and will see SPW and Ace collectively operating 94 hotels globally, with seven more in the pipeline.

Under the agreement, Ace Hotel will operate as an independent subsidiary of SPW’s hotel division but guests will have access to the Seibu Prince Global Rewards loyalty programme. 

Ace Hotel is planning further expansion across North America, Asia and Europe and is set to launch Ace Hotel Fukuoka in Japan in 2027.

The Ace Hotel brand was founded in Seattle in 1999 and its first London property opened in Shoreditch in 2013. The hotel closed in 2020 and was relaunched by Lore Group as One Hundred Shoreditch in 2022.

Ace currently operates hotels in locations including New York, Kyoto, Palm Springs, Sydney, Toronto and made a return to Europe last year with an opening in Athens. It is led by chief executive Chris Penn, who returned to the company in January this year. He was previously managing director of Ace Hotel London Shoreditch from 2013 to 2016.

SPW is aiming to have 250 hotels open globally by 2035 – roughly triple its existing estate. It currently has 86 hotels in the portfolio under 10 major brands, including the Prince Akatoki in London and Park Regis in Birmingham.

The group also operates several independent hotels, such as the Prince Waikiki in Hawaii and the hotel Seiryu in Kyoto, as well as multiple golf courses and ski resorts.

Yoshiki Kaneda, president and chief executive of SPW, said: “Today marks an important milestone in SPW’s journey to become a truly global hotel group with Japanese roots. 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.

“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.”

Penn said: “Ace has established itself as a leader in experiential hospitality, with a proven ability to create destinations that resonate across cultures and markets. Our partnership with SPW 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. Together, we are entering the next chapter in Ace’s evolution as a global company.”