Hilton recently announced that it is acquiring the lifestyle brand Graduate Hotels, which has grown to 33 locations in university towns throughout the United States and United Kingdom over the past decade. For $210 million, this boutique brand is earning high marks from one of the world’s largest hospitality companies.
While Graduate is relatively small, Hilton said it expects to grow the brand to the 400–500-unit range globally. This acquisition is a departure for Hilton, which prefers to grow its brands organically rather than through acquisition.
Other Hilton lifestyle brands – all fairly recent additions to the company’s portfolio – include Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton and Motto by Hilton. This is a rapidly growing hospitality segment for travelers, and Graduate Hotels has built a unique niche in largely underserved areas.
According to Hilton’s 2024 Trends Report, leisure travelers are seeking culture and experiences, so Graduate’s hyper-local focus dovetails nicely with current demand – especially from Gen Z and Millennial travelers, who are expected to increase spending on travel this year.