by Lacey Pfalz
Last updated: 11:20 AM ET, Thu March 14, 2024
Hilton announced on Thursday that it will acquire the Graduate Hotels brand for $210 million, adding the portfolio of unique hotels in college towns to its growing lifestyle portfolios.
Adventurous Journeys Capital Partners will remain the owner of the properties, each operated under long-term Hilton franchise agreements, though the future of the brand's expansion will be under the direction of Hilton.
The transaction is expected to take place in the second quarter of 2024. Graduate Hotels are located in college towns and cities across the U.S. and the U.K., including in Ann Arbor, Knoxville, Palo Alto, Oxford, Cambridge and more. Upcoming hotels are expected to open soon in Austin and Dallas in Texas; Auburn in Alabama and in Princeton, New Jersey.
The brand will be added to Hilton's growing lifestyle portfolio and will be added to the Hilton Honors loyalty program later this year.
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 Hiltons strong commercial engine to drive growth, said Chris Nassetta, president and CEO of 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, continued Nassetta.
Hilton has been on a roll expanding its lifestyle hotel offerings; it recently announced a partnership with AutoCamp to offer unique adventure-style accommodation offerings near national parks, and it also partnered with Small Luxury Hotels of the World to add the independently owned hotels to its Hilton booking channels.
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