Sortis Holdings Signs Definitive Agreement to Acquire Ace Hotel Group
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 a partner at the Ace Hotel Group and has been a key player in the Ace Hotel brand since shortly after its inception, leading its boundary-breaking creativity and success. With the Sortis team’s robust experience in innovative hospitality and intuitive brand development — along with decades of seasoned market acumen — Sortis is uniquely poised to amplify the Ace Hotel brand as a series of spirited cultural hubs that ignite neighborhoods and foster collaboration.
“From the very beginning, Ace has had evolution built into its DNA. This acquisition marks an exciting turning point for the brand — tapping some original key players to usher in Ace’s next chapter of growth,” said Kelly Sawdon. “Armed with a team that boasts nearly two decades of experience with the brand, Sortis can help evolve Ace’s position as the hospitality powerhouse it has always been, synonymous with community, creativity and culture.”
The acquisition of the Ace Group International includes 12 hotels - 10 Ace Hotel properties in Los Angeles, Brooklyn, Seattle, Kyoto, Sydney, New York and beyond as well as the innovative hospitality brands Sister City and Maison de la Luz. These strategic additions build upon Sortis Holdings’ existing hospitality portfolio, which includes the Ace Hotel Portland, Woodlark Hotel in Portland, Mayflower Park in Seattle, the ALUM brand, and several hotels under development including Hollywood, Seattle, Nashville and Carpinteria. The combined entity of Ace Group International and Sortis Holdings will have 15 hotels under management and a robust pipeline.
About Sortis Holdings, Inc.:
From award-winning hospitality to cult coffee to the world’s first sustainable sushi bar, Sortis Holdings is an ecosystem of idiosyncratic brands that live at the intersection of radical vision, cultural relevance and expansive potential. Through decades’ worth of seasoned market acumen, intuitive brand development and creative business strategy, we empower brands to become more of themselves, amplifying unique voices and moving culture forward in the process. www.sortisholdings.com
About Ace Group International:
Founded by three friends in 1999 in Seattle, Ace Hotel redefined the hotel as a community gathering space for locals and visitors alike. Today, Ace finds its home in vibrant cities around the globe — with its newest locations in Toronto, Canada, Kyoto, Japan and Sydney, Australia — celebrating the culture, history, and humans that bring them to life. Everybody is welcome.
Forward-Looking Statements Disclaimer
Certain statements in this press release are forward-looking statements. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. All statements, other than statements of present or historical fact included in this press release, are forward-looking, including statements: regarding future operations of businesses recently acquired by Sortis Holdings.; potential future acquisitions; attributes of the Sortis Holdings. platform; and growth opportunities. These forward-looking statements are subject to a number of risks and uncertainties, including the inability of the parties to successfully or timely complete proposed or desired transaction; failure to realize the anticipated benefits of proposed transactions; the challenges with managing a diversified business portfolio; and risks associated with the acquired businesses, including changes in customer behavior or government regulation to address COVID-19. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements.
Sortis Holdings Press Contact:
Gateway Group, Inc.
Zach Kadletz / Anna Rutter