Brand launches have been commonplace for Hilton over the past few years, but within the last few months, the company has fortified its lineup by other means with both an acquisition as well as a comprehensive rebranding effort.
Bolstering its presence in the trendy lifestyle segment, the mega-brand company in March announced an agreement to acquire the Graduate Hotels brand from AJ Capital. Just days later, the company announced a new prototype and branding campaign for its most popular brand, Hampton Inn by Hilton.
Hilton will pay $210 million to acquire all rights to the Graduate brand worldwide, enter into franchise agreements for all existing and signed pipeline Graduate Hotels, and become responsible for the brand’s future development and growth. 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. The deal is expected to close in the second quarter.
Hilton president and CEO Chris Nassetta suggested the market for the Graduate brand could be “400 to 500 hotels globally.”
He noted in a statement, “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.”
Each Graduate hotel is steeped in local history, charm, and nostalgia as well as being thoughtfully designed to reflect the unique character of its local university, according to Hilton. Since its inception in 2014, the brand has grown its presence within the United States and the United Kingdom, including locations in Ann Arbor, Michigan; Knoxville, Tennessee; Palo Alto, California; State College, Pennsylvania; and Oxford and Cambridge, United Kingdom, with new hotels opening soon in Austin and Dallas, Texas; Auburn, Alabama; and Princeton, New Jersey. Meanwhile, Hampton Inn recently rolled out a new North American prototype and unveiled a refreshed global brand identity for its more than 3,000 properties worldwide based on consumer research across three continents.
The North American prototype—in the works since 2021 and slated for its first hotel opening in early 2025—is poised to set new benchmarks in hospitality design and efficiency, according to Shruti Gandhi Buckley, senior VP and brand leader, Hampton by Hilton.
Buckley explained the catalyst for what Hilton is calling a “refresh” of the brand.
“The main impetus is our dedication to modernizing to meet the evolving travel needs of global consumers while retaining equity in the areas that Hampton is known for today. We’re redefining the category we pioneered and reinforcing our continued leadership as an innovator,” she said.
The North American prototypes are available for both Hampton Inn and Hampton Inn & Suites and are designed to be cost-efficient for developers.
“Hampton expects the new prototype to reduce costs to build and renovate and improve profit margins,” said Buckley.
According to the company, key updates will optimize revenue-generation opportunities for the prototype by increasing total key count within the same footprint and optimizing the Suite room layout for better site efficiency. It will also drive cost savings by up to 6 percent on new FF&E packages compared to previous packages.
The exterior of the prototype will include a simplified entrance canopy, subtle adjustments to the color scheme, and an added exterior patio for social gatherings. In addition, the guest welcome has been enhanced by repositioning the front desk, adding a localized feature wall and flexible multi-use space, and relocating the retail shop to a more prominent location within the lobby area, which is designed to drive increased revenue.
The guestrooms will now include a multi-functional task table, improved bathroom design, enlarged windows to increase natural light, and optimized in-room guest storage solutions. Two modern décor packages have been inspired by the beauty of America’s landscapes and vibrancy of its cities.
Hampton partnered with global branding agency Jones Knowles Ritchie (JKR) to create the new brand identity. The refreshed visual identity will roll out across all brand activities, marketing, and communications globally at the property level throughout 2024 and into 2025. According to Buckley, existing Hampton franchisees will have the opportunity to phase new identity elements into their properties and renovate their assets to reflect the new design and décor packages, aligning them with the brand’s fresh look and cutting-edge prototype.
