Hilton has announced plans to buy the Graduate Hotels brand, in a move that will add around 35 US and UK properties to its portfolio.
The group said it would pay $210 million “to acquire all rights to the Graduate brand worldwide, enter into franchise agreements for all existing and signed Graduate hotels and become responsible for the future development and growth of the brand.”
The deal is expected to close in the second quarter of this year, and AJ Capital will remain the owner of the properties, which will operate under long-term Hilton franchise agreements.
The Graduate Hotels brand launched in 2014 and focuses on “dynamic cities anchored by universities.” It currently has properties in cities across the U.S., including Athens, Bloomington, Cincinnati, Eugene, Minneapolis, Nashville, New York, and Seattle, and upcoming locations in Austin and Dallas.
The brand also added two UK hotels in Cambridge and Oxford in 2021. – in fact, the Graduate Cambridge was previously marketed as DoubleTree by Hilton Cambridge and was the first Hilton property in the UK under that brand. as I reported back in 2008.
Commenting on the news, Chris Nassetta, president and CEO of Hilton, said:
“Adding Graduate Hotels to our portfolio of award-winning brands accelerates our expansion into the lifestyle space by combining a beloved existing brand with the power of Hilton's strong business engine to drive growth.
“We have long had a high bar for adding brands to our portfolio, whether organically or through acquisitions, and Graduate will be another growth driver 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 address market for the Graduate brand is 400 to 500 hotels worldwide.”
The move follows Hilton's deal with Small Luxury Hotels of the World earlier this year, through which “hundreds” of properties will be available to book through Hilton channels.
Hilton to add earn and redeem benefits to “hundreds” of SLH properties
hilton.com, Graduatehotels.com
