The 123-room Ace Hotel Toronto opened in summer 2022 in thd city ’ s Garment District . |
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Ace Hotels , which grew out of the Pacific Northwest to be a global phenomenon , favored by a hip clientele that filled its darkish , communal lobbies , sipping on Stumptown Coffee while punching away on laptops that put the space aglow , has been acquired by Sortis Holdings , an alternative investment manager , based in Portland , Ore ., for a cash consideration of $ 85 million , which includes the brand IP and Atelier Ace , the hotel company ’ s management arm . The transaction is expected to close at the end of Q1 2023 .
Sortis Holdings already has exposure to Ace : it owns the Ace Hotel Portland , along with Rudy ’ s , a barbershop chain
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that was started by Ace Hotels founder , Alex Calderwood , who died in 2013 . The Rudy ’ s Barbershop , for instance , in New York is located adjacent to the Ace New York , on west 29th St . in Manhattan . Sortis also owns another tonsorial brand in Fellow Barber , along with a slew of coffee shop brands , such as See See Motor Coffee and Barista .
Beyond Ace Hotel Portland , Sortis owns an assortment of boutique , lifestyle and independent hotels , including the Mayflower Park Hotel in Seattle and the Woodlark Hotel in Portland . It also owns the Alum brand , hotels and residences in college communities , which are still under development in locations
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such as Eugene , Ore ., College Station , Texas , Ann Arbor , Mich ., and Columbus , Ohio .
Sortis ’ asset portfolio has a distinctively hipster quality to it , which is by design , said Paul Brenneke , executive chairman of Sortis Holdings . “ We consider these lifestyle brands that create unique experiences and have a strong point of view , which is what attracted us to them ,” he said . “ The Sortis platform is rooted in innovation , purpose and impact , and aims to foster consumer brands that are at the forefront of culture .”
Brenneke further said that its acquisition of the Ace Hotel brand , which he added is long known for embodying and celebrating the unique culture of each of
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its destinations , “ provides us with an opportunity to advance this vision by scaling the legacy brand in a thoughtful way .”
The strategy on how to expand the brand is still nascent , but Brenneke said that the plan is to double the entirety of Sortis ’ hospitality portfolio , with the Ace brand being the majority vehicle to get there . Operationally , Sortis will look to continue to manage some of the assets , but has no intention to franchise the Ace brand . “ We are focusing on measured and sustainable growth that doesn ’ t compromise the team , the brand or the types of assets we select ,” he said .
Ace Hotels currently numbers 11 operating properties , including Los
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12 hotelsmag . com Mar / Apr 2023 |