Hilton Buys Graduate Hotel Brand for $210 Million
Nashville-based AJ Capital to maintain ownership of the existing properties, while Hilton manages brand’s future growth.
Nashville, TN – In what can be described as a significant expansion move in the lifestyle space, hospitality giant Hilton announced on Thursday that it has entered into a definitive agreement to acquire the Graduate Hotel brand for $210 million. The brand, known for the creation of unique and stylish hotels within college towns in the US, was founded by Nashville-based AJ Capital Partners under the leadership of founder and CEO, Ben Weprin.
A Deal Aimed at Accelerating Growth
The deal involves Hilton acquiring the rights to the Graduate Hotels brand, which currently comprises 35 properties strategically located in various college towns across the U.S. Furthermore, the hospitality giant is set to take charge of the brand’s future development, while AJ Capital retains ownership of the existing Graduate hotels, which will operate under long-term Hilton franchise agreements.
Hilton’s Vision: 400-500 Graduate Hotels Worldwide
Speaking about the deal, Chris Nassetta, president and CEO of Hilton, highlighted the potential for increased market presence for the brand. Expressing optimism about the prospects for growth, Nassetta stated, “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“. According to Nassetta, the future market for the Graduate brand could range from 400 to 500 hotels globally.
The Story Behind Graduate Hotels
The Graduate Hotel brand, which is now a decade old, was started by Ben Weprin, founder of real estate company AJ Capital Partners. Since its establishment, the brand has seen impressive growth with hotels in key college towns like Athens, Georgia;near the University of Georgia campus. The footprint spans through several cities including Ann Arbor, Michigan; Knoxville, Tennessee; Palo Alto, California; State College, Pennsylvania; Madison, Wisconsin; and Nashville. Looking to the future, the brand has properties underway in Austin and Dallas, Texas; Auburn, Alabama, and Princeton, New Jersey.
Hilton and AJ Capital: A Boon for Future Growth
“With Hilton’s extensive network behind us, guests can anticipate even more exciting opportunities”, Weprin said in a news statement. “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.”
What’s next for Graduate Hotels?
Hilton’s purchase of the Graduate Hotel brand is projected to be finalized in the second quarter of this year. Following the expected successful acquisition, the Graduate Hotels are set to be available for booking via Hilton channels later this year, and they will participate in Hilton Honors, Hilton’s award-winning guest-loyalty program.
