Hilton Adds to Lifestyle Market with Graduate Hotels
Joe Cortez March 14, 2024
The hospitality giant announced the purchase of The Graduate hotel brand for $210 million, calling it a “significant growth opportunity” in the lifestyle hotel category.
Purchase Includes Brand, Licensing Agreement to Current Owner
Under the agreement, Hilton will only purchase the hotel branding for worldwide development. Current owner Adventurous Journeys Capital Partners will maintain ownership of the current and pipeline Graduate Hotels under a licensing agreement with Hilton.
Operating in well-known college towns across the United States, Graduate Hotels have distinguished themselves as destinations “steeped in local history, charm, and nostalgia.” Current properties can be found in the hometowns of the University of Michigan (Ann Arbor), the University of Tennessee (Knoxville), the University of North Carolina (Chapel Hill), Stanford University (Palo Alto, California), and Penn State University (State College).
According to Hilton, the acquisition fits well with overall expansion plans in the category. Citing the 2024 trends report, the hospitality company says nearly one-fourth of global travelers are planning excursions around concerts, sporting events, and other local experiences anchored by universities.
The deal is expected to close in the second quarter of 2024, with properties available for booking through Hilton by the end of the year. The properties will all participate in Hilton Honors, allowing travelers to both earn and redeem points when staying at the destinations. The brand joins other Hilton lifestyle hotels in the company’s portfolio, including the Curio Collection by Hilton, the Tapestry Collection by Hilton, and Motto by Hilton.
Hilton’s purchase is part of their aggressive expansion plan going into 2024. In February, the company announced they would partner with Small Luxury Hotels of the World, replacing Hyatt.
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