MCLEAN, Va. - Hilton (NYSE: HLT) has announced the acquisition of the Graduate Hotels brand from Adventurous Journeys Capital Partners, positioning the global hospitality leader to expand its presence in the lifestyle hotel market. The $210 million deal will see Hilton taking over all rights to the Graduate brand, as well as entering into franchise agreements with the more than 35 existing and pipeline Graduate properties.
The transaction, slated to close in the second quarter of 2024, is expected to be immediately accretive to Hilton, with a projected fee contribution of approximately $16 million for the first full year of ownership. The move aligns with Hilton's strategic growth in the lifestyle sector and leverages the Graduate brand's appeal in university towns.
Graduate Hotels, launched in 2014, has established a niche presence in the U.S. and the U.K. by tailoring its properties to reflect the local university spirit. The brand is set to join Hilton’s lifestyle portfolio which includes Canopy by Hilton, Curio Collection by Hilton, and others, responding to the traveler demand for localized experiences.
Chris Nassetta, Hilton's president and CEO, expressed enthusiasm for the acquisition, citing the potential to serve more guests in desirable destinations and the sizable market for the Graduate brand, estimated at 400-500 hotels globally.
Ben Weprin, founder of Graduate Hotels and CEO of AJ Capital, echoed the sentiment, highlighting the shared values between the companies and the anticipated growth for Graduate Hotels under Hilton's stewardship. AJ Capital will retain ownership of the real estate assets, ensuring a solid foundation for the brand's future.
Graduate Hotels are expected to be integrated into Hilton's booking channels later this year and will participate in the Hilton Honors loyalty program. The acquisition adds to Hilton’s diverse portfolio and partnerships, aimed at enhancing offerings in the industry’s fastest-growing markets.
The information for this article is based on a press release statement.
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