Hilton (NYSE: HLT) has announced its $210 million acquisition of the Graduate Hotels brand from Adventurous Journeys Capital Partners.
Graduate Hotels primarily focuses on markets near major colleges and universities in the U.S. and U.K. This is Hilton’s first brand acquisition since 1999.
As part of the acquisition, Hilton will 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, which will be operated under long-term Hilton franchise agreements. Graduate Hotels are expected to be available for booking via Hilton channels later this year and will participate in the Hilton Honors guest loyalty program.
“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.”
Photo: DennisM2 / Flickr Creative Commons
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