Hilton buys Graduate Hotels brand for $210M. What’s that mean for State College’s location?
Big changes may be coming to Hilton and the Graduate Hotels brand — but officials intimated that Graduate State College (125 S. Atherton St.) will largely continue with business as usual.
Hilton announced Thursday that it was acquiring the Graduate Hotels brand owned by Nashville’s AJ Capital for $210 million. AJ Capital will maintain ownership of its more than 30 existing Graduate Hotels, including its State College location, while operating under a long-term Hilton franchise agreement.
Hilton’s CEO believes the brand has the potential to grow up to 400-500 hotels worldwide.
“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 told the CDT 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, (AJ) Capital, will remain the owner of the Graduate State College and it will be operated by the same team.”
The general manager for Graduate State College, Carlos Faz, said everyone there is “thrilled” with the acquisition. But he referred all questions Friday to AJ Capital.
In an email exchange with AJ Capital and Hilton, officials there emphasized Hilton was not looking to redesign the Graduate Hotels brand or overhaul the hotels’ look, which has been described as nostalgia with a modern twist. Instead, AJ Capital founder/CEO Ben Weprin remarked in a written statement about the two companies’ “shared values and close collaboration,” adding the goal remains to keep Graduate Hotels’ “brand identity intact.”
That’s not to say there will be no changes. Besides presumably adding Hilton’s branding to the State College location, Graduate State College will become available for booking via Hilton channels later this year. It will also participate in Hilton’s loyalty program, Hilton Honors.
It wasn’t immediately known how, if at all, the acquisition might impact the local location’s pet-friendly policy or its future prices. On Friday afternoon, a standard room for State College on Saturday night cost $329, excluding taxes and fees.
Graduate Hotels was officially launched by AJ Capital in 2014. It purchased the State College location, formerly known as the Atherton Hotel, in October 2018 before significant renovations finished in early fall 2019.
Rooms boast Malin + Goetz bath amenities, Serta mattresses, complimentary Wi-Fi, mini fridges and steeped coffee. The hotel also houses The Trophy Room, a restaurant/bar that serves breakfast, lunch and dinner.
The $210 million deal between Hilton and Graduate Hotels is expected to close between April and June of this year.
