Hilton Worldwide Holdings has agreed to spend $210 million to acquire the 10-year-old Grader Hotels brand, which operates hotels in some of the largest college towns in the United States.
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Hilton Hotels’ parent company has agreed to buy a chain of hotels that operate exclusively near college campuses, a new bet for the hotel giant in college towns.
Hilton Worldwide Holdings has agreed to pay $210 million to acquire the 10-year-old Grader Hotels brand, which operates hotels in some of the nation’s largest college towns such as Ann Arbor, Miss.; Oxford, Miss.; Knoxville, Tenn.; Palo Alto, Calif.; and Penn State College, according announcement Made by Hilton on Thursday.
“Adding Graduation Hotels to our award-winning portfolio combines an existing, beloved brand with Hilton’s powerful commercial engine,” Hilton CEO and President Chris Nassetta said in a statement. combined to drive growth, thereby accelerating our expansion in the lifestyle segment.”
“We have long had a high standard for adding brands to our portfolio, whether organically or through acquisitions, and Graduate will be another driver of our growth, providing a unique opportunity to More guests can be served in more popular destinations. With thousands of colleges and universities around the world, we believe the target market for the Graduate brand is 400-500 hotels worldwide.”
The Graduate Hotel was launched a decade ago to fill an accommodation gap in university towns. While most college town hotels are either cookie-cutter suburban hotels or older high-end properties, Graduate Hotels are known for adapting each hotel’s decor to suit the local area or university, with many hotels heavily incorporating the logos of nearby universities and colleges. Its sports teams are incorporated into its design plans.
“We are honored to begin this next chapter for Graduate Hotels with Hilton, an ideal partner to guide the brand’s continued growth,” said Ben Weprin, founder of Graduate Hotels and CEO of AJ Capital Partners. “Our shared values and close collaboration will ensure a smooth transition while keeping Graduate Hotels’ unique brand image intact.”
Graduate Hotels’ current parent company, AJ Capital Partners, will continue to own the real estate where the hotel is located. The company is currently developing new hotels in Austin and Dallas, Texas; Auburn, Alabama; and Princeton, New Jersey.
Graduates will join the growing list of brands in Hilton’s lifestyle portfolio, including Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton and Motto by Hilton, which have been launched for the past decade. Launched to meet demand As the hotel industry battles with Airbnb for market share, travelers are demanding more unique lodging experiences.
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