What's Happening?
Seibu Prince Hotels Worldwide (SPW) has announced the acquisition of Ace Group International, the parent company of Ace Hotel and its creative agency Atelier Ace. This acquisition was executed through SPW's newly formed U.S. subsidiary, Ace Hotels Worldwide Inc. The deal allows Ace Hotel to operate as a subsidiary within SPW's hotel division, maintaining its brand and creative direction. The acquisition aims to integrate Ace's unique approach to hospitality with SPW's existing operations, which include a diverse range of properties from urban hotels to resorts. Currently, the Ace brand includes eight hotel properties in locations such as New York, Kyoto, Brooklyn, and Athens, with future development projects planned in North America, Asia, and Europe. The acquisition is part of SPW's strategy to expand its global portfolio to 250 hotels by fiscal year 2035. SPW currently operates 86 hotels, 31 golf courses, and 10 ski resorts.
Why It's Important?
This acquisition is significant as it marks a major step in SPW's long-term growth strategy, adding a lifestyle brand with international recognition to its portfolio. The deal provides Ace with access to SPW's global infrastructure and operational platform, supporting its growth strategy. The acquisition also allows Ace to join SPW's loyalty program, Seibu Prince Global Rewards, expanding its reach to a broader international audience while maintaining its creative independence. This move is expected to enhance SPW's competitive position in the global hospitality market, potentially increasing its market share and customer base. The integration of Ace's creative approach with SPW's operational expertise could lead to innovative hospitality offerings, benefiting both companies and their customers.
What's Next?
The acquisition is expected to close by the end of September 2025, with SPW set to pay approximately USD $90 million for the acquisition. Following the completion, SPW and Ace will collectively operate 94 hotels worldwide, with an additional seven properties in development. This expansion aligns with SPW's goal to increase its global hotel portfolio significantly by 2035. The hospitality industry will be watching closely to see how the integration of Ace's brand and SPW's operations unfolds, and whether it will lead to further acquisitions or partnerships in the future.
