Hilton Acquires College-Themed Graduate Hotels Brand
by Briana Bonfiglio /Hilton Hotels has agreed with Adventurous Journey Capital Partners (AJ Capital) to acquire Graduate Hotels.
The Graduate Hotels brand encompasses more than 35 hotels in the U.S. and U.K. that are anchored in college and university towns such as Ann Arbor, Michigan; Knoxville, Tennessee; Palo Alto, California; State College, Pennsylvania; Chapel Hill, North Carolina; and Oxford and Cambridge, United Kingdom. Hilton has agreed to pay $210 million to acquire its rights and guide the development of the brand going forward.
“We have long had a high bar for adding brands to our portfolio, whether organically or through acquisition, and Graduate will be another driver of growth for us, presenting a unique opportunity to serve more guests in more sought-after destinations,” said Chris Nassetta, president and CEO of Hilton. “With thousands of colleges and universities around the world, we believe the addressable market for the Graduate brand is 400-500 hotels globally.”
Graduate Hotels first launched in 2014. The hotels will now be incorporated into several of Hilton’s newer lifestyle brands, including Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton, and Motto by Hilton.
The properties under Graduate Hotels are expected to be available for booking through Hilton later this year. The brand also expects to open new hotels in Austin and Dallas, Texas; Auburn, Alabama; and Princeton, New Jersey.