Hilton Will Buy Graduate Hotels in Its First Brand Acquisition Since 1999

Hilton said on Thursday it will buy Graduate Hotels from Adventurous Journeys Capital Partners for $210 million, marking its first brand acquisition in over two decades as pressure in the hotel industry creates opportunity for consolidations.

Hilton said it believes the addressable market for the Graduate brand that primarily caters to locations near major colleges and universities in the United States and the United Kingdom, is 400-500 hotels globally.

“University towns tend to have steady demand, from students, parents and visiting academics, largely unconnected to the global economy,” said Richard Clarke, analyst at Bernstein.

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