Hilton Boosts Lifestyle Portfolio with Graduate Hotels Acquisition

Hilton announces the acquisition of Graduate Hotels, expanding its presence in the lifestyle hotel market and leveraging the brand's unique college town locations for global growth.

Hilton Expands Lifestyle Hotel Footprint with Strategic Graduate Hotels Acquisition

In a significant move within the hospitality industry, Hilton has announced its agreement with Adventurous Journeys Capital Partners (AJ Capital) to acquire the Graduate Hotels® brand, a favorite among fans for its unique presence in college towns across the United States and the United Kingdom. The acquisition, valued at $210 million, marks a notable expansion for Hilton into the rapidly growing lifestyle hotel market, with plans to broaden the brand's global reach.

This transaction will see Hilton acquiring all rights to the Graduate brand worldwide, including franchise agreements for existing and future Graduate Hotels. AJ Capital will retain ownership of the properties, which will operate under long-term franchise agreements with Hilton. Expected to close in the second quarter, the acquisition is set to enhance Hilton's earnings immediately, contributing approximately $16 million in fee revenue in its first full year.

Chris Nassetta, President and CEO of Hilton, emphasized the acquisition's strategic significance, noting that Graduate Hotels aligns with Hilton's high standards and growth ambitions, particularly in the lifestyle segment. With an estimated market potential of 400-500 hotels globally, the Graduate brand is poised to tap into the significant demand for accommodations in university towns worldwide.

Since its inception in 2014, Graduate Hotels has built a strong presence in both the U.S. and the U.K., with properties in key university towns such as Ann Arbor, Knoxville, Palo Alto, and Oxford, among others. The brand is celebrated for its locally inspired design, capturing the spirit and traditions of nearby universities, making it an ideal choice for alumni events, campus visits, and sports fans.

Ben Weprin, Founder of Graduate Hotels and CEO of AJ Capital, expressed enthusiasm about the partnership with Hilton, highlighting shared values and a commitment to exceptional guest experiences. This collaboration is expected to elevate the Graduate Hotels brand to new heights, benefiting from Hilton's extensive network and operational expertise.

Graduate Hotels will join Hilton's lifestyle portfolio alongside other recent launches like Canopy by Hilton and Tempo by Hilton, further diversifying the company's offerings in response to traveler demand for localized experiences. The brand's integration into Hilton’s ecosystem will include availability for booking through Hilton channels and participation in the Hilton Honors loyalty program, offering guests additional benefits and rewards.

This acquisition reflects Hilton's strategic focus on growth in dynamic market segments, underscoring its commitment to providing a diverse range of accommodations to meet every travel need. With this addition, Hilton continues to strengthen its position as a leader in the global hospitality industry, offering more unique and immersive travel experiences to its guests.