Hilton has struck a deal with Adventurous Journeys Capital Partners (AJ Capital) to acquire Graduate Hotels brand, marking its further expansion in the lifestyle sector. The agreement entails Hilton paying $210 million to obtain all global rights to the Graduate brand, including existing properties and future development opportunities. One among these is Graduate Hotel’s Southwest property in Palo Alto, Calif.
Upon completion of the transaction, expected later this year, pending customary closing conditions and regulatory approval, Hilton will take over franchise agreements for all operating and pipeline Graduate Hotels. This move is anticipated to enhance Hilton’s financial standing. The company expects the fee contribution for the first full year of ownership to be about $16 million. “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,” says Chris Nassetta, president and CEO of Hilton. The acquisition is expected to expand Hilton’s presence in the lifestyle hospitality sector and aligns with its strategy to cater to evolving traveler preferences, as highlighted in their 2024 Trends Report, which underscores the growing demand for localized travel experiences.
Graduate Hotels, known for its local and historical charm, will complement Hilton’s existing lifestyle brands, including Canopy, Curio Collection, Tapestry Collection, Tempo, and Motto. “Both Hilton and Graduate Hotels are committed to delivering exceptional experiences and making a positive impact on communities,” says Ben Weprin, founder of Graduate Hotels and CEO of AJ Capital. “Our shared values and close collaboration will ensure a smooth transition while keeping the Graduate Hotels’ unique brand identity intact.”
Since its inception in 2014, the Graduate Hotel brand has grown to span the United States and the United Kingdom.
