Hilton Reveals Agreement to Acquire Graduate Hotels
Hilton revealed today an agreement to acquire the popular Graduate Hotels brand in a move that opens up significant growth opportunities in the lifestyle hotel market.
The agreement, reached with AJ Capital, involves a $210 million acquisition of all worldwide rights to the Graduate brand. Hilton will also enter into franchise agreements for all existing and pipeline Graduate Hotels and will take charge of the brand’s future development and expansion. While AJ Capital will retain ownership of over 35 operating and pipeline Graduate properties, each will operate under long-term Hilton franchise agreements.
The transaction is anticipated to close in the second quarter, subject to customary closing conditions, with an estimated fee contribution of approximately $16 million for the first full year of ownership.
The addition of Graduate Hotels to Hilton’s portfolio promises to provide travelers with unparalleled hospitality experiences in their beloved university towns. Each Graduate hotel, known for its local history, charm, and nostalgia, is meticulously designed to reflect the distinctive character of its affiliated university.
The Graduate brand has rapidly expanded since its establishment in 2014, now spanning across the United States and the United Kingdom. Notable locations include Ann Arbor, Michigan; Knoxville, Tennessee; Palo Alto, California; State College, Pennsylvania; and Oxford and Cambridge, United Kingdom, with forthcoming openings in Austin and Dallas, Texas; Auburn, Alabama; and Princeton, New Jersey.
The addition of the Graduate brand adds to existing brands like Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton, and Motto by Hilton. These offerings, developed over the past decade, cater to the rising demand for immersive and personalized travel experiences.
Gradual integration into Hilton’s booking channels is expected later this year, with Graduate Hotels participating in Hilton Honors. Hilton Honors members enjoy exclusive benefits, including flexible payment options, member discounts, complimentary Wi-Fi, and access to the Hilton Honors mobile app.
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