Tourexpi
Hilton (NYSE: HLT) today announced an agreement
with Adventurous Journeys
Capital Partners (“AJ Capital”) to acquire the fan-favorite Graduate Hotels® brand,
adding a significant growth opportunity for the global hospitality leader in
the fast-growing lifestyle hotel market.
Hilton will pay $210 million to acquire all rights
to the Graduate brand worldwide, enter into franchise agreements for all
existing and signed pipeline Graduate Hotels, and become responsible for the
brand’s future development and growth. AJ Capital will remain the owner of the
more than 35 operating and pipeline Graduate properties, each of which will be
operated under long-term Hilton franchise agreements.
The transaction, which is expected to close in the
second quarter, subject to customary closing conditions including review and
approval pursuant to Hart-Scott-Rodino, will be immediately accretive to
Hilton. The company expects the fee contribution for the first full year of
ownership to be approximately $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."
“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,” said Chris Nassetta, president and CEO,
Hilton. “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.”
The addition of Graduate Hotels to Hilton’s global
portfolio will offer millions of travelers access to unparalleled hospitality
in their favorite university towns. Each Graduate hotel – steeped in local
history, charm and nostalgia – is thoughtfully designed to reflect the unique
character of its local university, offering the perfect setting for gamedays,
reunions, graduations, campus visits and more. Since its inception in 2014, the
brand has grown to span the United States and the United Kingdom, including
locations in Ann Arbor, Michigan; Knoxville, Tennessee; Palo Alto, California;
State College, Pennsylvania; and Oxford and Cambridge, United Kingdom, with new
hotels opening soon in Austin and Dallas, Texas; Auburn, Alabama; and
Princeton, New Jersey.
“We're proud to embark on this new chapter for
Graduate Hotels with Hilton, the ideal partner to steer the brand's continued
growth," said Ben Weprin, founder, Graduate Hotels and CEO, AJ Capital.
"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. With Hilton's extensive network behind
us, guests can anticipate even more exciting opportunities. We're certain this
partnership will propel Graduate Hotels to even greater heights, while AJ’s
ongoing ownership of the real estate assets lays a strong foundation for our
future success."
The Graduate brand will be incorporated into
Hilton’s fast-growing lifestyle portfolio alongside Canopy
by Hilton, Curio Collection by Hilton, Tapestry
Collection by Hilton, Tempo
by Hilton and Motto
by Hilton – each of which has been launched in the last 10 years to
respond to growing demand from travelers for localized travel experiences.
Hilton’s 2024
Trends Report identified that nearly a quarter of global travelers are
planning getaways for concerts, sporting events and other one-of-a-kind, local
experiences this year, many of which are happening in secondary markets
anchored by universities.
Graduate Hotels are expected to be available for
booking via Hilton channels later this year and will participate in Hilton
Honors, Hilton’s
award-winning guest loyalty program for the company’s portfolio of
more than 7,500 properties worldwide. Members who book directly with Hilton can
access instant benefits, including a flexible payment slider that allows
members to choose nearly any combination of Points and money to book a stay,
exclusive member discounts, free standard Wi-Fi and the Hilton Honors mobile
app.
Hilton continues to offer customers the right stay
for every travel occasion through an unmatched portfolio of industry-leading
brands plus exclusive partnerships that create more experiences for guests to
dream about. The addition of Graduate, as well as a recently announced
partnerships with Small Luxury Hotels of the World and AutoCamp, adds to the company’s dramatic growth trajectory
and reflects its focus on accelerating offerings for guests in the industry’s
fastest-growing markets and segments.
Deutsche Bank Securities Inc. is AJ Capital’s sole
financial advisor on this transaction.
Image
Credit: © Graduate Hotels
The most interesting news
Emirates begins operating with SAF at London Heathrow Airport
First SAF uplift for Emirates in the UK under London Heathrow SAF Incentive Scheme.
Over 260 applications from 60+ countries: Best Tourism Villages 2024 adventure kicks off
Over 260 villages from more than 60 countries representing the five regions of the world have put themselves forward for the 2024 edition of Best Tourism Villages by UN Tourism 2024.
Celebrity Apex Homeports In Southampton For First-Ever Season From The UK
Beginning today, guests can experience an elevated cruising experience directly from Southampton.
Emirates returns to Edinburgh with a daily A350 service
Emirates has announced it will resume flight operations to Edinburgh starting from 4 November 2024. The highly anticipated return to the Scottish capital will complement the airline’s current A380 daily flight to Glasgow and offer customers 14 week
Shanghai leads as hotspot for inbound tourism during May Day
Shanghai stood out as a premier destination for inbound tourism over the recent May Day holiday, driven by the successful launch of the "free half-day tour" initiative for those with layovers exceeding eight hours, which received international acclai
3rd International Halal Tourism Congress in Tükiye expects significant advancements by 2030
With Anadolu as global communication partner, event gathers academics, tourism experts, sector leaders to discuss various issues related to halal tourism
Al Hamra Redefines Luxury Living with the Launch of Waldorf Astoria Residences Ras Al Khaimah
Hilton (NYSE: HLT) and Al Hamra, the premier lifestyle developer and investment company in Ras Al Khaimah, proudly announce the launch of Waldorf Astoria Residences Ras Al Khaimah, set to open in 2026.
Lufthansa Group flies the flag for Europe and presents four ‘Yes to Europe’ aircraft in Brussels
President of the European Parliament Roberta Metsola and Lufthansa Group CEO Carsten Spohr speak out for a strong and free Europe.
UN Tourism Puts Spotlight on Investments and Empowerment at AIM Congress
UN Tourism returned the Annual Investment Congress (AIM) to put the focus on innovation and women’s empowerment, and investments in the Middle East.
Dusit Hotels and Resorts celebrates 75 years of Thai-inspired gracious hospitality
Exclusive offers and social media giveaways start this month.
Emirates invites UAE’s cabin crew candidates to exclusive events
Live in the UAE and dream of living the Emirates cabin crew life? If yes, Emirates has just the ticket for you.
TUI Care Foundation launches marine conservation programmes
TUI Sea the Change Bali includes the installation of a floating pontoon for coral planting and awareness workshops for visitors.
Hilton to Debut Canopy by Hilton and Hilton Garden Inn Brands in Nigeria
Canopy by Hilton Lagos Victoria Island and Hilton Garden Inn Enugu underscore Hilton's growth and commitment to Nigeria and the African continent
Discover the Turkish Riviera by Bicycle
A never-ending journey of lush forests, historic cities and turquoise coasts.
Holland America Line Opens Bookings for 2026 Grand World Voyage
2026 Grand Australia and New Zealand Itinerary Unvealed.
Lufthansa Group successfully issued bond with investment grade ratings
Corporate bond of 750 million euros issued.
JW Marriott, Renaissance, and Courtyard Santo Domingo Invite Travelers to this Capital City
Uncover personalized experiences, culinary delights, and an urban retreat of properties nestled in the bustling capital of Dominican Republic.
Redefining Today's Chinese Luxury Travelers
Marriott International Study Reveals Digital Journey and Experiential Luxury Crucial for Travel Choices in 2024.
Istanbul registers best performance as congress city in 8 years
Number of congresses held in Turkish metropolis soar as it ranks 21st worldwide with 72 congresses in 2023
Focus on destination management: welcome to a parallel world
At the ITB Berlin Convention 2024 the message was that people’s desire to travel is stronger than ever. However, if destinations want a piece of the cake they must do their homework.
Hyatt Doubles Down on Latin America Growth with 30+ Planned Openings Through 2027
Upcoming openings in Latin America & the Caribbean enhance Hyatt’s leadership in luxury, resort and lifestyle, creating unforgettable experiences in destinations that matter most to guests and World of Hyatt members