Ace Group International, the company behind the Ace Hotel brand, is close to finalising a sale to Tokyo-based Seibu Prince Hotels Worldwide, reported Bloomberg.

According to an unnamed source, the deal could be valued at up to $85m, including potential earn-outs, and Ace has been collaborating with adviser Jones Lang LaSalle (JLL) to evaluate strategic options.

The deal has not yet been finalised and remains at risk of collapsing.

A spokesperson for JLL declined to provide any comments while Seibu Holdings also chose not to comment. In addition, a representative for Ace had no immediate response.

Since the first Ace hotel opened in Seattle in 1999, the brand has expanded to other cities, including New York and Palm Springs, California, as well as garnered a loyal following in the competitive boutique hotel market.

In 2023, Ace reached an agreement to be acquired for $85m; however, the transaction ultimately fell through. According to the company, the brand currently operates properties in New York City, Kyoto, and Athens.

Meanwhile, former Ace hotels in downtown Los Angeles, New Orleans, and Portland, Oregon, have transitioned to other brand networks.

Ace is positioning itself for success in a market where boutique hotel brands are increasingly sought after, often being absorbed by larger corporations.

In a recent development, Hyatt Hotels acquired The Standard while Hilton Worldwide Holdings took over NoMad Hotels.

Seibu Prince, which manages several lodging brands such as Prince Akatoki, Park Regis by Prince, and Prince Smart Inn, aims to grow its presence through an asset-light strategy to create a global hotel network.