Hilton has acquired boutique lifestyle brand Graduate Hotels from Adventurous Journeys Capital Partners (AJ Capital) for $210 million.
The transaction is slated to close by the second quarter of this year.
Hilton will pay $210 million to acquire all rights to the Graduate brand worldwide, enter into franchise agreements for all existing and signed Graduate hotels, and become responsible for the brand's development and growth.
AJ Capital will remain owner of the 35-plus hotels that are operating and in the pipeline. Each hotel will be operated under long-term Hilton franchise agreements.
The Graduate flag will join Hilton's lifestyle portfolio, playing alongside the company's Canopy, Curio Collection, Tapestry Collection, Tempo and Motto brands.
Launched in 2014, Graduate Hotels focuses on college markets in the U.S. and U.K., with hotels in destinations like Ann Arbor, Michigan; Knoxville, Tennessee; Palo Alto, California; and Oxford and Cambridge in the U.K.
Plans are in the works for Graduate hotels in Princeton, New Jersey; Austin, Texas; Auburn, Alabama; and Dallas.
Hilton had been rumored to be in talks to acquire Graduate Hotels since February. While Hilton CEO Chris Nassetta declined to comment on the rumors during a call with analysts that month, he acknowledged that a brand acquisition would mark a different approach to expansion for Hilton.
"Our attitude on M&A is really the same as it's always been," said Nassetta at the time. "We've been consistent. We haven't done any, but every time I've ever been asked about [making acquisitions] the last 10 years of being public, I've said, 'Never say never.'"
Graduate Hotels will be the 23rd Hilton-owned brand.