Seibu Prince Buying Ace Hotel Brand for $90M

A hospitality unit of Japan’s Seibu Holdings has agreed to acquire the Ace Hotel brand for $90 million, giving the Tokyo-based travel conglomerate operational control of the boutique chain’s eight hostelries worldwide.

Ace will operate as a US-based subsidiary of Seibu Prince Hotels Worldwide upon completion of the deal by the end of September, the companies said Tuesday in a release. 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 transaction comes after Seibu Holdings earlier this year sold the Tokyo Garden Terrace Kioicho commercial complex to private equity titan Blackstone for $2.6 billion, with the Japanese group continuing to manage the site’s 250-key Prince Gallery Tokyo Kioicho hotel.

“Ace Hotel brings a distinctive cultural spirit that perfectly complements our portfolio,” said Seibu Prince president and CEO Yoshiki Kaneda. “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.”

Cultural Engagement

Founded in Seattle in 1999, Ace Hotel touts its use of communal spaces and engagement with local creative communities. The brand was nearly acquired by US asset manager Sortis Capital in 2023 for $85 million, but the deal collapsed.

The newly agreed deal will see Seibu Prince and Ace operate a total of 94 hotels worldwide, with seven more in the pipeline, as the Japanese company executes a long-term strategy to expand its global portfolio to 250 hotels by 2035.

Ace Hotel CEO Chris Penn said the partnership would provide a platform to accelerate expansion, strengthen Ace’s market presence and deliver long-term value while staying true to the brand’s hospitality model rooted in cultural engagement and creative expression.

“Together, we are entering the next chapter in Ace’s evolution as a global company,” Penn said.

Global Expansion in Sight

Seibu Prince is nearing control of Ace after selling 15 Prince hotels and 16 additional leisure properties in Japan to Singapore sovereign fund GIC three years ago in a $1.3 billion deal, with the Tokyo-based firm continuing to manage the hospitality properties post-disposal.

The company currently operates 86 hotels, 31 golf courses and 10 ski resorts in Japan and key markets including the US, Britain, Singapore, Australia and Dubai.

“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,” Kaneda said. “By combining these strengths, we can expand faster and more effectively together.”