Hilton plans to acquire the Graduate Hotels brand, the companies announced on Thursday, but few major changes appear to be in the offing for the Graduate State College location at 125 S. Atherton St.
The global hotel company will pay $210 million to acquire all rights to the Graduate Hotels brand from Nashville-based AJ Capital, which will remain owner of the 35 existing and in-the-pipeline Graduate locations and operate them under long-term franchise agreements, according to a news release.
“We love Graduate and the amazing experience the brand has created for its fans over the last decade – that’s why we are thrilled with the opportunity to add this fan-favorite brand to Hilton’s portfolio,” a Hilton spokesperson wrote in an email. “We are committed to maintaining what has made Graduate special and making it available to more even more guests who can discover its magic and become life-long fans. The current owner of Graduate Hotels, Adventurous Journeys Capital, will remain the owner of the Graduate State College and it will be operated by the same team.”
Launched in 2014, Graduate Hotels are located in college towns and designed to celebrate the local communities. The company in 2018 acquired the Atherton Hotel, which opened in 1987 and became a Hilton for about 10 years beginning in 1988 before returning to its original name. After renovations, the hotel reopened in 2019 as Graduate State College, with a restaurant and bar dubbed the Trophy Room.
While the atmosphere of the hotel isn’t expected to change, Graduate Hotels are expected to be available for booking through Hilton channels later this year and will participate in Hilton Honors.
Ben Weprin, founder of Graduate Hotels and CEO of AJ Capital, said Hilton represents “the ideal partner to steer the brand’s continued growth.”
“Our shared values and close collaboration will ensure a smooth transition while keeping the Graduate Hotels’ unique brand identity intact,” Weprin said in a news release. “With Hilton’s extensive network behind us, guests can anticipate even more exciting opportunities.”
Pending approval, the acquisition is expected to be completed in the second quarter of 2024, according to the release.
Hilton anticipates the Graduate brand will be a “driver of growth,” CEO Chris Nassetta said in a statement.
“With thousands of colleges and universities around the world, we believe the addressable market for the Graduate brand is 400-500 hotels globally,” Nassetta said.
Graduate State College will become the fifth Hilton-affiliated hotel in Centre County, joining Hilton Garden Inn State College, Hampton Inn State College, Hampton Inn & Suites at Williamsburg Square and Scholar State College. A Canopy by Hilton is also planned for the State College Town Centre project, and a Tru by Hilton is in the works for Benner Pike near Bellefonte.
