Hilton Worldwide has agreed to acquire the Graduate Hotels
brand, a chain of more than 30 upper-upscale properties primarily located in
U.S. college towns, for $210 million, the company announced Thursday.
Hilton said it would enter into franchise agreements for all
existing and signed pipeline Graduate Hotels properties, while Adventurous
Journeys Capital Partners will remain the owner of the properties.
Founded in 2014, each Graduate Hotel is located near a
college or university, including two in England and a handful in the U.S.
pipeline. Hilton said it would incorporate Graduate into its lifestyle
portfolio, alongside such brands as Canopy, Curio and Tapestry.
"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," Hilton president and CEO
Christopher Nassetta said in a statement. "With thousands of colleges and
universities around the world, we believe the addressable market for the
Graduate brand is 400 to 500 hotels globally."
Hilton said it expects the transaction to close in the
second quarter, subject to customary closing conditions.