Hilton has announced an agreement with Adventurous Journeys Capital Partners to acquire the Graduate Hotels brand for $210m (£164.7m).
The transaction is expected to close in the second quarter subject to customary closing conditions.
This means that Hilton will 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.
This includes The Randolph Hotel by Graduate Hotels and Graduate Cambridge and Graduate Hotels are expected to be available for booking on Hilton.com later this year.
Chris Nassetta, president and CEO at Hilton, said: “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.
“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.”
Ben Weprin, founder, Graduate Hotels and CEO, AJ Capital, added: “We’re proud to embark on this new chapter for Graduate Hotels with Hilton, the ideal partner to steer the brand’s continued growth. 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.”