Hilton Targets 500 Undergraduate Hotels in College Town Expansion

Hilton is structuring its college-town strategy by introducing Undergraduate by Hilton, an upper-midscale brand designed for smaller university markets that cannot support the bespoke Graduate brand. By offering flexible new-build and conversion models with a lower cost structure, Hilton aims to scale the new flag rapidly, targeting 400 to 500 properties over the next one to two decades.

What sparked the creation of the Undergraduate brand?

The concept for the new brand originated from a personal experience of Hilton CEO Chris Nassetta. During a private May 2 event held with company executives and journalists at the NYU International Hospitality Investment Forum, Nassetta shared the origin story. While visiting his daughter, a student at Bucknell University in Lewisburg, Pennsylvania, he noticed a lack of creative lifestyle accommodations for visiting families [2]. He observed that aside from a nearby state penitentiary and a Hampton Inn, the lodging options were limited and lacked creativity [2]. This prompted him to ask why a college-focused brand could not be brought to Lewisburg and similar small college towns that require something different [2]. According to Hotel Dive, this realization led directly to the creation of Undergraduate, which officially launched on a Monday as Hilton’s 28th brand [2].

How does Undergraduate differ from the Graduate brand?

Undergraduate by Hilton is positioned as an upper-midscale brand, whereas Graduate by Hilton operates in the upper-upscale category [2]. Hilton acquired Graduate Hotels, originally founded by Ben Weprin of AJ Capital Partners, in 2024 [2]. Graduate Hotels had tripled in size during the pandemic and currently has about 60 hotels in various stages of development [2]. While Graduate properties are fully bespoke and design-driven, Undergraduate offers a cost structure suited to demand in more campus-driven markets [3]. Kevin Osterhaus, Hilton’s president of global lifestyle brands, noted at the NYU event that the company needed a "2.0" version to grow into markets that could not sustain the scope of a Graduate hotel [2]. Undergraduate provides an accessible stay that embraces the spirit of college life, designed as "off-campus social hubs" for travelers visiting college towns, including students, parents, alumni, sports fans, and business travelers [3].

What development models will the new brand utilize?

To achieve its ambitious growth targets, Hilton plans to grow the Undergraduate brand through both new-build and conversion opportunities [1]. According to Boutique Hotel News, these projects will be located in close proximity to college and university campuses [1]. This flexible development model offers owners and developers better scalability and efficiency [3]. By utilizing both new-builds and conversions, Hilton provides owners with opportunities to reflect the spirit of their local campus communities while delivering the consistency expected from the parent company [3]. Long-term, Nassetta expects the brand will grow to 400 to 500 hotels easily over the next decade or two [2]. This growth potential is in addition to market opportunities already identified for the Graduate brand [3]. The first Undergraduate property is anticipated to open in 2027 [1].

What amenities and design features will properties include?

Undergraduate by Hilton hotels will take inspiration from local college towns and communities [1]. The brand will feature guest rooms designed as "creative classrooms" [1]. Properties will also include social public spaces intended to foster connection among guests [1]. Food and beverage offerings will center around a barista-led, all-day market, alongside a cocktail program powered by Authentic Hospitality [1]. Nassetta stated that the company saw a clear opportunity to bring the energy, design, and experiences people love about campus communities to more university towns [1]. He added that Undergraduate unveils an exciting new era of college-town hospitality, expanding how the company shows up for campus-connected travelers and offering more stay options [3].

How does this fit into Hilton's broader lifestyle portfolio?

The launch of Undergraduate supports Hilton’s broader strategy to expand its lifestyle hotel division [1]. Nassetta noted that Undergraduate reflects the ongoing momentum of the company's lifestyle portfolio, which he described as one of the most dynamic areas of expansion [1]. Hilton plans to grow its lifestyle portfolio to offer 700 hotels globally by 2028 [1]. This year alone, the company plans to open 60 lifestyle hotels [3]. As part of this ongoing growth, Boutique Hotel News reported that Curio Collection by Hilton and Tapestry Collection by Hilton have both surpassed 200 hotels globally [1]. Additional openings for these collections are planned across the US, Europe, Asia, and Africa [1].

How do the two college-town brands compare?

The distinction between the two brands dictates their respective market placements and development costs. The following table outlines the primary differences between Graduate and Undergraduate, based on the company's announcements.

By establishing these two distinct tiers, Hilton ensures it has a product available for both major university markets and smaller college towns that require a more accessible cost structure [2].