The hotelier is expanding in fast-growing lifestyle category with addition of hotels in some of the world’s greatest college towns
Hilton has acquired the Graduate Hotels® brand, adding a significant growth opportunity for the global hospitality leader in the fast-growing lifestyle hotel market. Graduate Hotels, owned by Adventurous Journeys Capital Partners (AJ Capital), is a collection of hand-crafted hotels that reside in dynamic university-anchored towns in the U.S. and U.K. Each hotel pays homage to the heritage of its unique town through cultural nods to the local community. Launched in 2014, there are currently more than 35 Graduate Hotels open or in the pipeline across the U.S. and the U.K.
Hilton will pay $210 million to acquire all rights to the Graduate brand worldwide, enter into franchise agreements for all existing and signed pipeline Graduate Hotels, and become responsible for the brand’s future development and growth. AJ Capital will remain the owner of the more than 35 operating and pipeline Graduate properties, each of which will be operated under long-term Hilton franchise agreements.
“Adding Graduate Hotels to our portfolio of award-winning brands accelerates our expansion in the lifestyle space by pairing an existing much-loved brand with the power of Hilton’s strong commercial engine to drive growth,” said Chris Nassetta, president and CEO, Hilton. “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. With thousands of colleges and universities around the world, we believe the addressable market for the Graduate brand is 400-500 hotels globally.”
The addition of Graduate Hotels to Hilton’s global portfolio will offer millions of travelers access to unparalleled hospitality in their favorite university towns. Each Graduate hotel – steeped in local history, charm and nostalgia – is thoughtfully designed to reflect the unique character of its local university, offering the perfect setting for gamedays, reunions, graduations, campus visits and corporate meetings and events. Of particular interest to meeting planners are the off-site venues provided by the universities as well as the potential speakers available from the faculties.
Since its inception in 2014, the brand has grown to span the United States and the United Kingdom, including locations in Ann Arbor, Michigan; Knoxville, Tennessee; Palo Alto, California; State College, Pennsylvania; and Oxford and Cambridge, United Kingdom, with new hotels opening soon in Austin and Dallas, Texas; Auburn, Alabama; and Princeton, New Jersey.
“We’re proud to embark on this new chapter for Graduate Hotels with Hilton, the ideal partner to steer the brand’s continued growth,” said Ben Weprin, founder, Graduate Hotels and CEO, AJ Capital. “Both Hilton and Graduate Hotels are committed to delivering exceptional experiences and making a positive impact on communities. Our shared values and close collaboration will ensure a smooth transition while keeping the Graduate Hotels’ unique brand identity intact. With Hilton’s extensive network behind us, guests can anticipate even more exciting opportunities. We’re certain this partnership will propel Graduate Hotels to even greater heights, while AJ’s ongoing ownership of the real estate assets lays a strong foundation for our future success.”
The Graduate brand will be incorporated into Hilton’s fast-growing lifestyle portfolio alongside Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton and Motto by Hilton – each of which has been launched in the last 10 years to respond to growing demand from travelers for localized travel experiences. Hilton’s 2024 Trends Report identified that nearly a quarter of global travelers are planning getaways for concerts, sporting events and other one-of-a-kind, local experiences this year, many of which are happening in secondary markets anchored by universities.
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