The hotel giant believes the acquisition of the Graduate brand will accelerate its lifestyle expansion.
Hilton expects the acquisition of the Graduate Hotel brand, which specializes in hotels near college campuses, to accelerate the growth of its rapidly expanding lifestyle portfolio.
The hospitality giant last week acquired Lifestyle from Adventurous Journeys Capital Partners (AJ Capital) in a deal that gives Hilton worldwide rights to the brand and franchise agreements for existing and contracted Graduate Hotels. announced that it would acquire the hotel brand for $210 million.
AJ Capital will continue to own the property and operate it under a long-term Hilton franchise agreement.
Hilton CEO Chris Nassetta said in a statement that Hilton expects to expand the Graduate brand, which includes 37 hotels currently in operation or under development, to up to 500 stores worldwide. said.
“We believe the Graduate brand's addressable market is 400 to 500 hotels worldwide,” Nassetta said, adding that the Graduate acquisition “combines the existing popular brand with Hilton's strong commercial strength.” Together, we will accelerate our expansion in the lifestyle sector.” It is the engine that drives growth. ”
Nassetta said the Graduate acquisition will have an immediate impact on Hilton, which expects to incur approximately $16 million in fees during the first full year of ownership of the brand.
Graduate's current portfolio includes hotels in some of the largest college towns in the United States, including Ann Arbor. State College, Pennsylvania. Knoxville, Tennessee. And Palo Alto. The brand also has stores in Oxford and Cambridge, UK, and plans to open hotels in Austin, Texas, and Princeton, New Jersey.
Each Graduate Hotel is designed to reflect the unique character and history of the local university, with brand marketing touting “the perfect setting for game days, reunions, graduations, and campus visits.”
Hilton's rapidly expanding lifestyle portfolio includes Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton and Motto by Hilton. , all launched in the past decade to serve the growing market of local travel experiences.
When Hilton opened its first Canopy hotel in San Francisco in 2022, the company said it expected to double its lifestyle pipeline by 2032. Canopy by Hilton San Francisco SoMa is advertised as an “authentic local experience” and is designed as an “authentic local experience.” The natural expanse of the neighborhood. ”
In its 2024 trends outlook, Hilton predicted that the post-pandemic recovery in leisure travel will continue its momentum.
“64% of global travelers aim to cut back on other areas of personal spending in favor of leisure travel in 2024, as the world becomes more wanderlust again post-pandemic. “This is especially true for Gen Z and Millennials, who plan to increase their travel spending in 2024,” the outlook says.
