Hilton Hotels Corporation HLT has entered into an agreement with Adventurous Journeys Capital Partners (AJ Capital) to acquire the Graduate Hotels brand.
Hilton will pay $210 million to acquire all rights to the Graduate brand worldwide.
The company will also enter into franchise agreements for all existing and signed pipeline Graduate Hotels.
AJ Capital will remain the owner of the more than 35 operating and pipeline Graduate properties which will be operated under long-term Hilton franchise agreements.
Hilton expects the fee contribution for the first full year of ownership to be approximately $16 million.
The transaction is expected to close in the second quarter and will be immediately accretive to Hilton.
“Adding Graduate Hotels to our portfolio of award-winning brands accelerates our expansion in the lifestyle space by pairing an existing much-loved brand with the power of Hilton’s strong commercial engine to drive growth,” said President and CEO Chris Nassetta.
Graduate Hotels are expected to be available for booking through Hilton channels later this year.
Price Action: HLT shares are trading higher by 0.16% at $208.87 on the last check Thursday.
Photo via Wikimedia Commons
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