Hilton has made an announcement today that it has reached an agreement with Adventurous Journeys Capital Partners for the acquisition of the Graduate Hotels brand. This move signifies a valuable expansion opportunity for Hilton in the rapidly expanding lifestyle hotel market.

Hilton is set to invest $210 million to secure complete ownership of the Graduate brand globally. This entails entering franchise agreements for all existing and upcoming Graduate Hotels, as well as assuming the responsibility for the brand’s future progress and expansion. AJ Capital will retain ownership of over 35 operational and upcoming Graduate properties, which will be operated under Hilton franchise agreements for the long term.

The anticipated completion of the transaction is scheduled for the second quarter, pending the fulfillment of standard closing conditions, such as the assessment and endorsement required under Hart-Scott-Rodino. Hilton will experience immediate positive impact from this agreement. It is projected that the fee contribution for the initial twelve months of ownership will amount to approximately $16 million.

Hilton’s global portfolio will now include Graduate Hotels, providing countless travelers with exceptional hospitality in their preferred college towns. Each Graduate hotel embodies the local history, charm, and nostalgia, showcasing the distinctive character of its affiliated university. These hotels create an ideal environment for gamedays, reunions, graduations, campus visits, and more. Since its establishment in 2014, the brand has expanded across the United States and the United Kingdom, with locations in Ann Arbor, Michigan; Knoxville, Tennessee; Palo Alto, California; State College, Pennsylvania; and Oxford and Cambridge, United Kingdom. Furthermore, new hotels will soon open in Austin and Dallas, Texas; Auburn, Alabama; and Princeton, New Jersey.

Hilton’s expanding lifestyle portfolio will now include the Graduate brand, joining other successful ventures like Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton, and Motto by Hilton. Over the past decade, Hilton has introduced each of these brands to meet the increasing desire of travelers for authentic and personalized travel experiences.