Tag: ace group

Sortis Holdings Signs Definitive Agreement to Acquire Ace Hotel Group

Sortis Holdings, Inc.

Sortis Holdings, Inc.

Sortis Aims to Double its Hotel Footprint by 2025

PORTLAND, Ore., Jan. 17, 2023 (GLOBE NEWSWIRE) — Sortis Holdings, Inc. (OTC: SOHI) (the “Company” or “Sortis”) — an ecosystem of innovative, experiential hospitality brands — has entered into a definitive agreement to acquire Ace Group International, along with its management company, Atelier Ace. With the acquisition, Sortis Holdings, Inc. will be ushering in a new chapter for the iconic brand in an era of cultural collaboration, innovation, and conscious growth, for both the company and the Ace Hotel brand at large. 

The purchase consideration is comprised of $85 million in an all-cash transaction pursuant to the terms of the purchase agreement. The transaction is expected to close at the end of Q1 2023, subject to customary closing conditions.

From award-winning restaurants to cult coffee to the world’s first sustainable sushi bar and now adding the Ace Group, the Sortis platform is an evolving ecosystem of idiosyncratic brands united in their vision and innovation. Equal parts incubator, operator, and development platform, Sortis helps these brands amplify their unique voices through strategic guidance and value-adding resources, like optimized capital access, real estate growth strategies, co-location opportunities, as well as our in-house digital team for data and analytics, and e-commerce capabilities.

“The Sortis platform is rooted in innovation, purpose, and impact, and aims to foster consumer brands that are at the forefront of culture,” said Paul Brenneke, Executive Chairman of Sortis. “Our acquisition of the storied Ace Hotel brand, long known for embodying and celebrating the unique culture of each of its destinations worldwide provides us with an opportunity to advance this vision by scaling the legacy brand in a thoughtful way.”

Sortis Holdings’ hospitality partner Kelly Sawdon led the acquisition. Prior to joining Sortis in 2021, she was

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Ace Hotel Chain Acquired for $85 Million by Hospitality Firm Sortis: Analysis

Image of the exterior entrance to the Ace hotel in Brooklyn. Source: Ace.

Image of the exterior entrance to the Ace hotel in Brooklyn. Source: Ace.

Ace Group International, the operator of a buzzy brand of 11 open Ace lifestyle hotels, will be acquired by Sortis Holdings, a Portland, Oregon-based hospitality firm, the companies said on Tuesday.

Sortis paid $85 million in cash for Ace Group, owner of the Ace brand, the luxury Maison de la Luz brand (with one property open), the minimalist lodging brand Sister City (which was temporarily open and could be brought back), and the management company, Atelier Ace.

Sortis’ Kelly Sawdon led the acquisition. Before she joined Sortis in 2021, Sawdon was a partner at the Ace Hotel Group and had been a key player in the brand since shortly after its creation by three friends (Doug Herrick, Alex Calderwood, and Wade Weigel) in 1999 in Seattle.

Sortis got to know the Ace founders during the pandemic crunch. In 2021, it became a co-owner of the downtown Portland Ace Hotel in Washington state. As a joint owner along with Ace executives, it helped to fund the company’s refurbishment during the aftermath of the coronavirus hit to travel.

The combined entity Ace and Sortis organizations will have 15 hotels under management. Sortis manages, and is half-owner of, the Mayflower Park Hotel in Seattle.

Sortis plans to roughly double the number of Ace hotels worldwide over several years, it told the Wall Street Journal, which broke the story.

Is Sortis a Good Home for Ace?

Sortis has been scaling up a set of lifestyle businesses. It has stakes in a handful of restaurants, coffee shops, the Rudy’s Barbershop chain (co-founded by a co-founder of Ace), and the Bamboo Sushi restaurant chain. It takes hospitality brands and provides capital access, real estate growth strategies, co-location

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