PROVIDENCE – The Graduate Hotels brand, which operates one of the state’s most prominent hotels, has a new owner.
Hilton announced Thursday that it has acquired the rights to the Graduate worldwide brand for $210 million per an agreement with Adventurous Journeys Capital Partners, the Chicago-based hospitality entity also known as AJ Capital. Per the transaction, which is expected to close in the second quarter, Hilton says it will enter into franchise agreements for all existing and signed pipeline Graduate hotels and be responsible for the Graduate brand’s future growth.
Also, AJ Capital will remain owner of more than 35 operating and pipeline Graduate properties, each of them operating under long-term Hilton franchise agreements, Hilton says. Hilton also expects the fee contribution for the first full year of ownership to be about $16 million, and Graduate hotel bookings will be available on Hilton’s channels later this year.
Among the properties in AJ Capital’s portfolio is the Graduate Providence, formerly known as the Providence Biltmore hotel, on Dorrance Street. The 294-room hotel, built in 1922 with the trademark glass elevator and illuminated “Biltmore” rooftop sign, was
purchased by AJ Capital in 2017 for $43.6 million – and later
rebranded as the Graduate Providence.
The Graduate Providence had previously been sold in 2012 for $15 million in a court-assisted transaction, according to city records.
“Adding Graduate Hotels to our portfolio of award-winning brands accelerates our expansion in the lifestyle space by pairing and existing much-loved brand with the power of Hilton’s strong commercial engine to drive growth,” Hilton CEO and President Chris Nassetta said in a statement.
Ben Weprin, founder and CEO of AJ Capital, said in a statement that he feels the partnership with Hilton will propel Graduate to “even greater heights,” while AJ Capital’s ongoing real estate asset ownership “lays a strong foundation” for the company’s future success.
It is unclear if Graduate Providence will undergo a rebranding or renovation as part of Hilton’s purchase of the Graduate brand. Representatives from the respective companies did not immediately respond Friday to a request for comment.
Hilton spokesperson Kent Landers confirmed Friday to Providence Business News that no changes to the Graduate Providence’s brand or interior look will be made. “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,” Landers said. “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.”
(UPDATED to include comment from Hilton spokesperson Kent Landers.)
James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on Twitter at @James_Bessette.
