ACE HOTEL / Seattle

THE BRAND

The Ace Hotel is a pioneer of the “value boutique” hotel, combining the stylish accommodation of a “Design” boutique with the intimacy and feel of a small, European hotel at an affordable price.

“ACE HOTEL IS A MEGA-CHAIN WAITING TO HAPPEN.”

WALLPAPER MAGAZINE

ACE HOTEL / Seattle

THE BRAND

The Ace Hotel reinterprets the traditional hotel model, enhancing the value of the property at less cost, maximizing alternate revenue streams and offering a limited service product at a comparably premium rate. Ace offers an innovative integrated hotel product with bar/café and retail concepts marketed to both hotel guests and locals. Each new hotel is positioned as a catalyst in the experience economy, providing real access to the cultural life of the city.

SELECTED AS “THE NEXT WAVE” OF HOTELIERS IN TIME MAGAZINE’S LIST OF 100 INNOVATORS.

ACE HOTEL / Seattle

HOW DOES ‘DESIGN’ BENEFIT A HOTEL?

A. ‘Design’ attracts media interest B. ‘Design’ reflects the way people look and feel today C. ‘Design’ encourages guests to spend more money

“AUSTERE MODERNISM, ORGANIC FORMS AND A DAB OF STREET CULTURE COME TOGETHER IN AN ORDERED YET FRESH MIX.” ARCHITECTURAL RECORD

ACE HOTEL / Seattle

NEVERSTOP

Neverstop – our affiliated marketing company – enables us to project a clear, compelling identity in the marketplace and provides a cost-effective, innovative means to drive occupancy and stabilize average daily room rates.

www.neverstop.com
“NEVERSTOP’S EXPERIENTIAL MARKETING CAMPAIGNS HELP CLIENTS SUCH AS NIKE, GIORGIO ARMANI, GAP, AND MICROSOFT BUILD BRANDS, PROMOTE PRODUCTS, AND CONNECT WITH CUSTOMERS.”
FAST COMPANY MAGAZINE

ACE HOTEL / Seattle

SEATTLE PROTOTYPE

The Ace Hotel Seattle is a 28-room prototype in the historic Belltown neighborhood of Seattle, Washington. Created in 1999 from the bones of an SRO Mission Hotel, the Ace has been featured in numerous magazines, travel books, design books and online travel sites. The Ace’s rooms feature loft-like ceilings, hardwood floors, and a single sink and vanity in each room. Half the hotel features custom private bathrooms or, for the budget-minded traveler, there are European rooms with shared bathrooms.

“ACE, THE PLACE BETWEEN BOUTIQUE AND CHEAP.”

TIME MAGAZINE

ACE HOTEL / Seattle

ACE CUSTOMERS

While the Ace appeal is very democratic, Ace specifically targets cultural influencers and opinion leaders on a budget. This market is a growing class of creative professionals, ranging in age from 25-50, who travel widely for business and pleasure, who seek out quality and whose influence extends beyond their personal circles.

“THE HOTEL FEATURES A SPARTAN, FUTURISTIC DESIGN AND ATTRACTS A VARIED CLIENTELE – TRENDSETTING ARTISTS, WEB DESIGNERS, SNOWBOARDERS, FILMMAKERS AND NOMADS.” INSTYLE MAGAZINE

ACE HOTEL / Seattle

MARKETPLACE

Currently, the large chains are scrambling to cater to the Ace core audience, a group that they call “Generation X.” This group has “eclipsed baby boomers in average per-trip spending for trips involving a hotel stay… spending an estimated $1,297 per trip on a per-capita basis; baby boomers, $1,155.”*
*D.K. Shifflet & Associates

“THE SKETCH OF THE GEN X TRAVELER, AS DEVELOPED BY MARKET RESEARCHERS, GOES LIKE THIS: THEY CRAVE BRANDED ITEMS – FOR EXAMPLE, STARBUCKS, NOT COFFEE. PARADOXICALLY, THEY’RE LESS LOYAL THAN OLDER TRAVELERS TO SINGLE BRANDS… THEY’RE WILLING TO SCOUR THE WEB TO FIND A BOUTIQUE HOTEL OOZING WITH ATTITUDE, INSTEAD OF SIMPLY BOOKING THE SAME CHAIN HOTEL THEIR FAMILY BOOKED FOR THEIR 1980s VACATIONS.” USA TODAY

ACE HOTEL / Seattle

ACQUISITION PROFILE The Ace Hotel Group is a branded management and operations company focusing on leases and management contracts. Ace seeks to reposition niche properties that are often overlooked or undervalued by large hotel operators. Ace also partners with local and international Real Estate developers to find and acquire properties based on lease commitments or management arrangements. The Ace brand generally seeks 60-150 room properties with exploitable public spaces for locally relevant food and beverage operations, retail and event space.
“CASH-CONSCIOUS URBAN NOMADS FLOCK TO SEATTLE’S ACE HOTEL FOR A FUSION OF EUROPEAN PENSION AND MINIMALIST LUXURY.” ARCHITECTURAL RECORD

ACE HOTEL / Seattle

ACE MARKETS

Ace has focused primarily on the EU, based on the increased availability of appropriate hotel properties and a higher density of cultural travel. Ace is also targeting specific properties in selected North American and Pacific Rim markets. Gateway high demand cities: Paris, London, New York, Tokyo, Amsterdam. As well as cultural centers and growing markets such as: Berlin, Montreal, Portland, Hamburg, Stockholm.

“...THE ACE CLIENTELE – HIP URBANITES IN FOR A VISIT WHO LIKE A LICK OF LUXURY, BUT DON’T NECESSARILY NEED ALL THE INDULGENCES OF TYPICAL HIGH-CLASS HOTELS.”
BEST DESIGNED HOTELS IN NORTH & SOUTH AMERICA

ACE HOTEL / Seattle

VALUE PROPOSITION: FAST, LOW-COST DEVELOPMENT

Ace focuses primarily on FF&E upgrades and can deliver faster development turnaround times and phased in operations to allow for shorter ramp-up periods and reduced risk. Ace will create or increase value of distressed, under-utilized, or under-performing properties. Ace can acquire 1 and 2 star properties and achieve 3 star rates through repositioning and marketing.

“ACE IS A KIND OF SUPER-AESTHETIC BARRACK, WITH AN IN-THE-KNOW ECONOMY OF STYLE.”

TIME MAGAZINE

ACE HOTEL / Seattle

VALUE PROPOSITION: ECONOMY OPERATIONS AT MID-SCALE ROOM RATES
Personalized service and unique, intimate design allows Ace to charge a relative premium room rate that is cheaper than typical “design boutique” hotels while offering a more unique and compelling product than comparably priced accommodation. The Ace embraces the concept of limited service, giving it a “cool” factor that keeps operating costs low, while maximizing revenues. The Ace’s entrepreneurial approach endeavors to integrate solid alternate revenue streams wherever possible including locally-oriented food and beverage operations, innovative retail products, services, and strategic alliances with local and international ventures.

“ACE IS EVERYTHING YOU NEED, AND NOTHING YOU DON’T.”

CUSTOMER COMMENT

ACE HOTEL / Seattle

VALUE PROPOSITION: INNOVATIVE, PRO-ACTIVE SALES AND MARKETING
– Web Savvy Strategy: Ace has an in depth understanding of the digital domain and is continuing to develop new ways to use the internet as a marketing tool, a direct reservation system and customer touch-point. – In-House Sales and Marketing: Each property will have a dedicated salesperson to develop local, in-market relationships and corporate clients. – Neverstop provides Ace with a dedicated marketing staff to push a broader international strategy and is adept at generating publicity in traditional and non-traditional media outlets.
"THE ACE HOTEL... IT’S A CROSS BETWEEN FUTURISM AND THE EUROPEAN KIND OF CLASSIC HOTEL.” ACTOR TIM ROBBINS IN AMERICAN WAY MAGAZINE

ACE HOTEL / Seattle

ENTREPRENEURIAL SPIRIT

Ace will integrate solid alternate revenue streams wherever possible, including its nationally recognized chain of Rudy’s Barbershops, locally oriented food & beverage operations, and other innovative retail products and services. Ace expects to develop new brands and seek strategic alliances with local and international ventures.

“RUDY’S BARBERSHOP IS A CUT ABOVE THE REST.”

FLAUNT MAGAZINE

ACE HOTEL / Seattle

TECHNICAL INNOVATION

Ace is developing custom ways to integrate technology in hotels utilizing the Tablet PC platform, which streamlines and personalizes the check-in process and the Media PC platform, which can allow us to offer a custom, branded, in-room entertainment solution.

SELECTED AS ONE OF THE 5 BEST WEST COAST HOTELS BY THE INDEPENDENT, LONDON

ACE HOTEL / Seattle

THE ACE TEAM
Founding partners, Alex Calderwood and Wade Weigel have been successful in a variety of design-savvy, cost conscious, entrepreneurial ventures targeted towards the “culture classes.” Along with the Ace Hotel in Seattle, they also created the well-known, growing chain of Rudy’s Barbershops with 12 locations in Los Angeles, Portland and Seattle. Alex Calderwood is also founder and principal of Neverstop, a nichemarketing and event production company, whose clients include Nike, Microsoft, Giorgio Armani, and Song Airlines. In addition to Ace and Rudy’s, Wade Weigel has owned several successful bars and clubs including Cha-Cha Lounge, Bimbo’s Bitchin’ Burrito Kitchen, and the Viceroy.

“IN AN INDUSTRY RENOWNED FOR DUPLICATION INSTEAD OF INNOVATION, SEATTLE NATIVE ALEX CALDERWOOD MAY WELL BE A 21ST CENTURY CONRAD HILTON IN THE MAKING.” WALLPAPER MAGAZINE

ACE HOTEL / Seattle

THE ACE TEAM
Doug Herrick is a founding partner and general manager of the Ace Hotel. Since the opening in 1999, Doug has acted as the on-site manager, responsible for daily operations including marketing, management, and customer relations. Jack Barron is the former Managing Director of Westfield International, Inc, a merchant bank that specialized in Real Estate development. He has a Masters in Architecture and is responsible for evaluating hotel opportunities. He is currently based in Amsterdam. Michael Bisordi is a Principal of Tungsten Partners in New York, a real estate investment company. Tungsten Partners is a minority partner in Ace Hotel and is involved in global sourcing, underwriting and funding of transactions.

CONSULTANTS
Falk Wisinger, City Investments - Paris Joost Mees, MD Hotel Investments - Amsterdam Dolph Segaar & Mark Mathijssen, CMS Derks Star Busmann - Utrecht Nasir Rasheed, Neverstop - Seattle
ACE HOTEL / Seattle

CONTACT

Alex Calderwood 206.769.5665 (US)
alex@neverstop.com

Tungsten Partners 212.343.4280 (US)
aceinvestments@tungstenpartners.com

Jack Barron +31 650 471 311 (EU)
jackb@neverstop.com

www.acehotel.com
ACE HOTEL / Seattle