Hilton could become a major hotel player in college towns and cities across the country
The hotel giant is considering acquiring Graduate Hotels, a brand concentrated in the US but with properties in the UK. First reported by Bloomberg Monday afternoon. Graduate started as a boutique hotel brand focused on U.S. college towns such as Oxford, Mississippi (home of the University of Mississippi), Athens, Georgia (home of the University of Georgia), and Ann Arbor, Michigan (home of the University of Michigan) . .
The company has since expanded into larger cities, such as Nashville, New York City, and Providence, Rhode Island, albeit cities with strong education.
The Bloomberg report noted that the potential deal has not yet been finalized. A Hilton spokesperson declined to comment on market rumors or speculation when contacted by TPG.
Potential brand acquisitions primarily come from organically launched brands, while competitors such as Marriott, Hyatt, and IHG acquire brands to expand into spaces and geographic areas not previously occupied. This will be a strategic departure for Hilton, which has been on a path to growth. Presence was limited.
“Brand consolidation is definitely the name of the game in the hotel industry these days,” said Daniel Lesser, CEO of LW Hospitality Advisors.
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The partnership with Graduate Hotels isn’t Hilton’s first rumored brand acquisition in recent months either.
Conversations between investors and analysts at last week’s America’s Lodge Investment Summit raised the possibility of Hilton acquiring the trendy NoMad Hotels brand, which operates hotels in Las Vegas and London. This adds to suggestions that Hilton management is expanding the company into some kind of luxury lifestyle brand, although most expected the company to launch its own brand in this space.
“Everything has its pluses and minuses,” Lesser said. “If you [develop and launch a brand] Organically it takes a lot of time. As opposed to instant gratification, time is money. ”
Without undue speculation, Hilton’s one-two punch of acquiring both brands would give it immediate access to the lifestyle hotel sector across a variety of markets and price points.
Graduate Hotels could offer lifestyle hotel services to a smaller market that still wants cool hotels with local bars and restaurants. NoMad could be a direct competitor to Marriott Edition in some of the world’s largest and most expensive cities.
if Paris Hilton’s glamorous Hilton-branded clutch If last night’s Grammy Awards are any clue, it’s clear that Hilton is obsessed with the shiny things that get her maximum exposure these days.
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