This week, Hilton announced its intention to Graduate Hotels, which will add to its ever-growing roster of lifestyle brands.
Let’s take a look at what this means for Hilton’s portfolio, and what we might expect after the deal closes sometime later this year.
Hilton to Acquire Graduate Hotels
This week, Hilton announced its intention to add Graduate Hotels to its global portfolio of hotels. Hilton will pay $210 million (USD) to acquire all rights to the Graduate brand worldwide, and will enter into franchise agreement for all existing and planned Graduate hotels.
The transaction is expected to close in the second quarter of 2024, pending final closing conditions.
The brainchild of Adventurous Journeys Capital Partners (AJ Capital), Graduate Hotels is a chain of 35 themed properties found in college towns across the US and in the UK.
Catered towards college-goers and their guests, each property takes on a campus theme, whilst paying homage to the culture of communities they’re in.
As a design-driven brand, Graduate Hotels fits squarely into Hilton’s lifestyle portfolio, which includes Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton, and Motto by Hilton.
Hilton sees the potential to grow the brand to 400–500 hotels, catering to colleges and universities around the world.
Hilton has not yet revealed at which market segment Graduate Hotels will fit into when it assumes ownership of the brand. However, as things stand, rooms in US properties average at $150–250 (USD); therefore, Graduate Hotels would probably be positioned in the premium hotel segment.
Existing Graduate Hotels, as well as those in the pipeline, are expected to be available for booking through various Hilton channels later this year. Likewise, they’re expected to eventually be integrated into the Hilton Honors loyalty program.
As the brand joins Hilton Honors, you can expect to earn and redeem points at Graduate Hotels. As well, you can expect member benefits, such as room discounts and free Wi-Fi at the minimum– though Hilton hasn’t confirmed the full list of benefits yet.
The Graduate Hotels Footprint
Graduate Hotels are found in college towns across the US, such as Berkeley, California near University of California Berkeley; Providence, Rhode Island near Brown University; and Evanston, Illinois near Northwestern University. As it stands, most properties are found in the Midwest.
Meanwhile, in the UK, there are two hotels – one each in Cambridge and Oxford.
With Graduate Hotels located in college towns, they become particularly popular whenever there are sporting events, concerts, graduation season, and other local happenings.
If you don’t have any connections to colleges, the addition of Graduate Hotels to Hilton’s portfolio likely won’t move the needle very much for you. However, if you’re headed to a college sporting match or have any other reasons to visit a college, you’ll at least have an option to remain in the Hilton ecosystem, if you so desire.
It remains to be seen how Graduate Hotels will fit into the Hilton Honors loyalty program. Once the partnership goes live, we’ll be sure to update this article with redemption rates and other noteworthy news.
Conclusion
Later on in 2024, Hilton will be adding Graduate Hotels to its growing portfolio of lifestyle brands.
Located in college towns in the United States and the United Kingdom, Graduate Hotels take on a campus theme, whilst paying homage to the communities they’re in.
The brand’s 35 properties in the US and UK will be bookable through various Hilton sales channels later this year. Eventually, they’ll also join the Hilton Honors program, so members can earn and redeem points, as well as enjoy other benefits when they book direct.
