Hilton Checks Into the Campus Scene: Inks $210M Deal To Bring Graduate Hotels Under Its Umbrella
Portfolio Pulse from Shivani Kumaresan
Hilton Hotels Corporation (NYSE:HLT) has announced a $210 million acquisition of the Graduate Hotels brand from Adventurous Journeys Capital Partners (AJ Capital). The deal includes franchise agreements for over 35 existing and pipeline Graduate properties, with AJ Capital retaining ownership. Hilton anticipates a $16 million fee contribution in the first year post-acquisition, expecting the transaction to close in Q2 and to be immediately accretive. Graduate Hotels will be bookable through Hilton channels later this year.
March 14, 2024 | 4:01 pm
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Hilton acquires Graduate Hotels for $210M, expecting a $16M fee contribution in the first year. The deal includes franchise agreements for over 35 properties.
The acquisition of Graduate Hotels by Hilton is likely to have a positive short-term impact on HLT's stock price due to the immediate accretive nature of the deal, the expected $16 million fee contribution in the first year, and the expansion into the lifestyle space which could attract investor interest. The positive price action following the announcement further supports this outlook.
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