Hilton Expands Lifestyle Category with Acquisition of Graduate Hotels

Hilton, a renowned global hospitality leader, has unveiled plans to enrich its lifestyle hotel offerings through the acquisition of the beloved Graduate Hotels® brand. This strategic move, in partnership with Adventurous Journeys Capital Partners (“AJ Capital”), represents a significant opportunity for Hilton to tap into the thriving lifestyle hotel market, particularly in iconic college towns worldwide.

Under the agreement, Hilton will invest $210 million to secure all rights to the Graduate brand globally. This includes forging franchise agreements for existing and future Graduate Hotels, while AJ Capital will retain ownership of over 35 operating and pipeline properties. The transaction, slated to finalize in the second quarter, subject to customary approvals, is poised to bolster Hilton’s revenue immediately, with an anticipated fee contribution of approximately $16 million in the first year.

Christopher J. Nassetta, President and CEO of Hilton, expressed enthusiasm about the acquisition, stating, “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.”

The integration of Graduate Hotels into Hilton’s global network promises to offer millions of travelers unparalleled experiences in their favorite university locales. Each Graduate hotel embodies local heritage, charm, and nostalgia, reflecting the distinctive character of its affiliated university. From gamedays to reunions, graduations, and campus visits, these properties provide an ideal setting for memorable moments.

Ben Weprin, founder of Graduate Hotels and CEO of AJ Capital, emphasized the partnership’s significance, stating, “We’re proud to embark on this new chapter for Graduate Hotels with Hilton, the ideal partner to steer the brand’s continued growth.”

Graduate Hotels will join Hilton’s dynamic lifestyle portfolio alongside other esteemed brands, such as Canopy by Hilton, Curio Collection by Hilton, and Tapestry Collection by Hilton. This strategic move aligns with Hilton’s commitment to meeting evolving traveler preferences and delivering authentic, localized experiences.

With the addition of Graduate Hotels, Hilton anticipates further enhancing its offerings for guests, providing access to unique travel experiences and bolstering its position as a leading hospitality provider.