Hilton Adds Graduate Hotels® to Global Brand Portfolio, Accelerating Expansion in Fast-Growing Lifestyle Category

MCLEAN, VA and NASHVILLE, TN – Hilton (NYSE: HLT) today announced an agreement with Adventure Journeys Capital Partners (“AJ Capital”) to acquire the fan-favorite Graduate Hotel.^® This adds significant growth opportunities for the global hospitality leader in the fast-growing lifestyle hotel market.

Hilton will pay $210 million to acquire all rights to the Graduate brand worldwide, enter into franchise agreements with all existing and signed pipeline Graduate Hotels, and be responsible for the future development and growth of the brand. I will bear the burden. AJ Capital will continue to be the owner of more than 35 operating and pipeline graduate facilities, each of which will be operated under a long-term Hilton franchise agreement.

The transaction is expected to close in the second quarter, subject to customary closing conditions, including Hart-Scott-Rodino review and approval, and is expected to be reflected immediately in Hilton. The company expects its fee burden for the first full year of ownership to be approximately $16 million.

“By adding Graduate Hotels to our portfolio of award-winning brands, we are expanding our reach in the lifestyle space by combining popular existing brands with Hilton's strong commercial engine to drive growth. will accelerate.”

“Adding Graduate Hotels to our portfolio of award-winning brands builds on our existing, well-loved brands and Hilton's strong commercial engine,” said Chris Nassetta, President and CEO of Hilton. “By combining our strengths to drive growth, we will accelerate our expansion in the lifestyle space.” “We have long had a high bar for adding brands to our portfolio, whether organically or through acquisition. Graduate will be another driver of our growth, expanding our reach in more popular destinations It provides a unique opportunity to serve more guests.With thousands of universities around the world, we believe the Graduate brand's addressable market is between 400 and 500 hotels worldwide. ”

The addition of Graduate Hotels to Hilton's global portfolio will enable millions of travelers to enjoy unparalleled hospitality in their favorite college cities. Brimming with local history, charm and nostalgia, each graduate hotel is thoughtfully designed to reflect the unique character of the local university, providing the perfect setting for game days, reunions, commencement ceremonies, campus visits and more doing. Since its founding in 2014, the brand has grown to span the United States and United Kingdom, including Ann Arbor, Michigan. Knoxville, Tennessee. Palo Alto, California. State College, Pennsylvania. New hotels are opening soon in Oxford and Cambridge, England, and in Austin and Dallas, Texas. Auburn, Alabama. and Princeton, New Jersey.

“We are proud to embark on a new chapter for Graduate Hotels with Hilton, an ideal partner to guide the brand's continued growth,” said Graduate Hotels Founder and CEO of AJ Capital. Ben Weprin said. It's about providing a great experience and having a positive impact on our community. Our shared values ​​and close collaboration will ensure a smooth transition while preserving Graduate Hotels' unique brand identity. With Hilton's extensive network, guests can look forward to even more exciting opportunities. We are confident that this partnership will propel Graduate Hotels to even greater heights, and AJ's continued ownership of our real estate assets will create a strong foundation for our future success. ”

The Graduate brand joins Hilton's rapidly growing lifestyle portfolio, alongside Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton and Motto by Hilton. It will be included in your portfolio. Each of these has emerged over the past decade and is in high demand from travelers looking for locally tailored travel experiences. Nearly a quarter of the world's travelers are planning vacations this year focused on concerts, sporting events, and other unique local experiences, many of them in college-based locations, according to Hilton's 2024 Trends Report. It has become clear that this is being done on the secondary market.

Graduate Hotels will be available for booking via Hilton Channel later this year and will join Hilton Honors, Hilton's award-winning guest loyalty program across a portfolio of more than 7,500 hotels worldwide. I plan to. Members who book directly with Hilton have immediate access to benefits such as a flexible payment slider that lets you choose almost any combination of Points and dollar amounts when booking your stay, member-only discounts, free standard Wi-Fi, and the Hilton Honors mobile app. Masu.

Hilton continues to deliver the perfect stay for every travel occasion through an unparalleled portfolio of industry-leading brands and exclusive partnerships that create the experiences guests dream of. The addition of Graduate and the recently announced partnership with Small Luxury Hotels of the World and AutoCamp further accelerates the company's dramatic growth trajectory, making it one of the fastest growing markets in the industry. and reflects our focus on accelerating service delivery for guests in the segment.

Deutsche Bank Securities AG is AJ Capital's sole financial advisor on this transaction.

Forward-looking statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, without limitation, statements regarding expectations regarding the performance of Hilton's business, future financial results, liquidity and capital resources, and other non-historical statements. In some cases, words such as “outlook”, “believe”, “expect”, “anticipate”, “may”, “continue”, “may”, “will”, etc. You can identify these forward-looking statements by the use of words. “should,” “could,” “seek,” “plan,” “anticipate,” “intend,” “plan,” “estimate,” “anticipate,” or any of these words. or the negative version of other equivalent words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks inherent in the hospitality industry. macroeconomic factors beyond Hilton's control, such as inflation, changes in interest rates, labor shortages and conflicts, and challenges posed by supply chain disruptions; competition for hotel guests, management and franchise agreements; risks associated with transactions with third-party hotel owners; performance of Hilton's information technology systems; the growth of Hilton's off-system reservation channels; Risks of doing business outside the United States. risks related to conflicts and other geopolitical events in Eastern Europe and the Middle East; And thanks to Hilton. Additional factors that could cause Hilton's results to differ materially from those described in the forward-looking statements are discussed in Part I of Hilton's Annual Report on Form 10-K for the ended fiscal year. – In the section entitled “Item 1A. Risk Factors”. December 31, 2023. It has been filed with the Securities and Exchange Commission (the “SEC”) and can be accessed through the SEC's website at www.sec.gov. Accordingly, there are or may be important factors that could cause actual outcomes or results to differ materially from those expressed in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements contained in this press release and Hilton's filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.