Hilton has inked a deal with Adventurous Journeys Capital Partners to acquire the Graduate Hotels brand for $210 million.
The purchase comes as part of Hilton’s plan to expand in the lifestyle segment, and the brand will be incorporated into Hilton’s lifestyle portfolio alongside Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton and Motto by Hilton.
Following the acquisition, Hilton will own all rights to the Graduate brand worldwide, will be able to enter into franchise agreements for all existing and signed pipeline Graduate Hotels and will become responsible for the brand’s future development and growth. AJ Capital will remain the owner of the over 35 operating and pipeline Graduate properties, each of which will be operated under long-term Hilton franchise agreements.
The transaction is expected to close in the second quarter of 2024. Hilton expects the fee contribution for the first full year of ownership to be around $16 million.
Deutsche Bank Securities is AJ Capital’s sole financial advisor on this transaction.
What they said
Chris Nassetta, president & CEO at Hilton said: “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.”
Ben Weprin, founder of Graduate Hotels and CEO of AJ Capital added: “We're proud to embark on this new chapter for Graduate Hotels with Hilton, the ideal partner to steer the brand's continued growth. 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.”