Hilton to acquire Graduate Hotels in $210 million deal
Hilton has struck a new deal with Adventurous Journeys Capital Partners (AJ Capital) to purchase the beloved Graduate Hotels, including the downtown Iowa City location.
In a landmark $210 million deal, Hilton has secured exclusive global rights to the Graduate brand and is acquiring all existing and forthcoming Graduate Hotels.
The transaction has not yet closed but is anticipated to by June 2024.
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Graduate Hotel is a landmark of Iowa City's Pedmall
Chris Nassetta, Hilton's president and CEO, expressed enthusiasm about the acquisition's potential in a news release.
"Adding Graduate Hotels to our portfolio of award-winning brands accelerates our expansion in the lifestyle space by pairing an existing much-loved brand with the power of Hilton's strong commercial engine to drive growth," Nassetta said.
Graduate Hotels is a chain of hotels that cater to college towns and cities across the United States, offering accommodations and amenities that reflect the local culture and university spirit.
The Graduate Hotel brand was started in 2014 by Ben Weprin, founder of the real estate company AJ Capital Partners. The first Graduate Hotel was in Athens, Georgia, near the University of Georgia campus. Other Graduate Hotels began to pop up in places like Ann Arbor, Michigan; Madison, Wisconsin; and Iowa City.
Iowa City's Graduate Hotel also houses the Wilder restaurant, which has been ranked among the Top 10 for Iowa's Best Burgers.
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Operations will continue as normal
Hilton intends to preserve the charm of Graduate Hotels while also trying to catch a broader audience.
Adventurous Journeys Capital will retain ownership of the Graduate Iowa City and plans to maintain its current staff.
"We are committed to maintaining what has made Graduate special and making it available to even more guests who can discover its magic and become life-long fans," said a Hilton spokesperson in an email to the Press-Citizen.
Graduate Hotels are expected to be available for booking via Hilton channels later this year and will participate in Hilton Honors along with other lifestyle hotels like Tempo by Hilton and Tapestry Collection by Hilton.
Jessica Rish is an entertainment, dining and business reporter for the Iowa City Press-Citizen. She can be reached at JRish@press-citizen.com or on X, formerly known as Twitter, @rishjessica_
This article originally appeared on Iowa City Press-Citizen: Hilton strikes $210 million for Graduate Hotels