Hilton to acquire Graduate Iowa City

Multinational hospitality company Hilton Hotels & Resorts is acquiring Graduate Iowa City as part of a $210 million deal that includes the entire Graduate chain, expanding the hotel’s global brand portfolio. Hilton entered an agreement with Adventurous Journeys Capital Partners on March 14, acquiring the rights to the Graduate brand by entering into franchise agreements for all current and upcoming Graduate Hotels, assuming responsibility for the brand's ongoing development and expansion. “AJ Capital will remain the owner of the more than 35 operating and pipeline Graduate properties, each of which will be operated under long-term Hilton franchise agreements,” a news release said. Graduate Iowa City, at 210 S. Dubuque St., is located in the downtown Ped Mall, a convenient 20-minute walk from Kinnick Stadium and near University of Iowa's campus. “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 said, in an email to the CBJ. “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. The current owner of Graduate Hotels, Adventurous Journeys Capital, will remain the owner of the Graduate Iowa City and it will be operated by the same team.”

Graduate hotels unique to each city

Graduate Iowa City manager Jay LeaVesseur said the deal has not been officially closed, so not much is known at this point regarding future changes, or lack thereof. “Hilton will have intellectual property rights,” he said, “operating as co-ownership (with AJ Capital). The deal hasn’t been finalized yet, but Hilton will market and develop the brand moving forward.”

Graduate hotels, considered a boutique chain, are unique in that each one specifically reflects the character of the college town it resides in. Local history and nostalgia are integrated into the decor – for example, Graduate Iowa City’s lobby walls are covered in hand-painted prose and quotes, a nod to Iowa City’s status as a UNESCO City of Literature and the University of Iowa’s acclaimed writing program. The hotels are popular for campus visits, game days, reunions and graduations, and have grown to span the United States and United Kingdom since its inception in 2014. “We're proud to embark on this new chapter for Graduate Hotels with Hilton, the ideal partner to steer the brand's continued growth," said Ben Weprin, founder, Graduate Hotels and CEO, AJ Capital. "Both Hilton and Graduate Hotels are committed to delivering exceptional experiences and making a positive impact on communities. Our shared values and close collaboration will ensure a smooth transition while keeping the Graduate Hotels' unique brand identity intact. With Hilton's extensive network behind us, guests can anticipate even more exciting opportunities. We're certain this partnership will propel Graduate Hotels to even greater heights, while AJ’s ongoing ownership of the real estate assets lays a strong foundation for our future success." The deal is expected to close by the end of the second quarter, and Graduate Hotels should be available for bookings through Hilton channels later this year.