Hilton buys Graduate Hotels, including two UK sites in Oxford and Cambridge

Hilton has made a rare acquisition – this is the first major one since it bought Embassy Suites, DoubleTree and Hampton in 1999 – with the $210 million purchase of Graduate Hotels.

The name may ring a bell. The company has two hotels in the UK – The Randolph in Oxford which we reviewed here and pictured below, and Graduate Cambridge. The Cambridge property, second image below, was previously a DoubleTree by Hilton hotel before being sold to Graduate.

Graduate Hotels has 33 sites in total, with the other 31 in the United States. They are situated in university towns and “cater to college alumni, students, and communities with hip, nostalgic-themed design and campus-centric amenities.”

Hilton believes that the brand could grow to 400-500 hotels globally.

In some ways, the hotels – and the cities they serve – are similar to IHG’s Hotel Indigo brand. Most Hotel Indigo sites are in upmarket mid-tier cities which by definition will usually have a well regarded university nearby.

There is something a little odd about the structure of the deal.

Graduate Hotels currently owns, outright or via long lease, the majority of its sites. There is nothing that Hilton likes less than owning physical assets, so the business is being split. The current owners will retain all of the property assets and the hotel management will not change. Hilton is simply acquiring the brand, simultaneously franchising it back to the existing hotels.

Hilton stated yesterday that it will receive $16 million in franchise fees in the first year. This is a remarkably good 7.6% return on its $210 million investment, especially as the fee will rise in line with room rates and there are four new openings coming too.

Was Graduate Hotels in need of the cash? Or has Hilton convinced the owners that it can raise occupancy rates and therefore make the underlying property assets more valuable?

The deal is forecast to close by the end of June, following regulatory clearances.

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How to earn Hilton Honors points and status from UK credit cards (April 2025)

There are various ways of earning Hilton Honors points from UK credit and debit cards.  Many cards also have generous sign-up bonuses.

There are two dedicated Hilton Honors debit cards. These are especially attractive when spending abroad due to the 0% or 0.5% FX fee, depending on card.

You also receive FREE Hilton Honors status for as long as you hold the debit cards – Gold status with the Plus card and Silver status with the basic card. This is a great reason to apply even if you rarely use it.

We reviewed the Hilton Honors Plus Debit Card here and the Hilton Honors Debit Card here.

You can apply for either card here.

SPECIAL OFFER: Until 30th April 2025, the annual fee on the basic Hilton Honors debit card is halved from £60 to £30. The sign-up bonus is also easier to earn – you need to spend £1,000 either in the UK or abroad within three months. The usual bonus rule requires you to spend the full £1,000 outside the UK.

NEW: Hilton Honors Plus Debit

10,000 bonus points, Hilton Gold status and NO FX fees Read our full review

NEW: Hilton Honors Debit

2,500 bonus points, Hilton Silver status and 0.5% FX fees Read our full review

There is another way of getting Hilton Honors status, and earning Hilton Honors points, from a payment card.

Holders of The Platinum Card from American Express receive FREE Hilton Honors Gold status for as long as they hold the card.  It also comes with Marriott Bonvoy Gold, Radisson Rewards Premium and MeliaRewards Gold status.

We reviewed American Express Platinum in detail here and you can apply here.

SPECIAL OFFER: Until 27th May 2025, the sign-up bonus on American Express Platinum is increased from 50,000 Membership Rewards points to a huge 80,000 points. Points convert 1:1 into Avios (80,000 Avios!) and many other programmes. Some people may see even higher personalised offers. Click here to apply.

The Platinum Card from American Express

80,000 bonus points and great travel benefits – for a large fee Read our full review

You can also earn Hilton Honors points indirectly with:

• American Express Gold (20,000 bonus Amex points)
• American Express Rewards Credit Card (10,000 bonus Amex points)

SPECIAL OFFER: Until 27th May 2025, the sign-up bonus on the ‘free for a year’ American Express Preferred Rewards Gold card is increased from 20,000 Membership Rewards points to 30,000 points. Points convert 1:1 into Avios (30,000 Avios!) and many other programmes. Some people may see even higher personalised offers. Click here to apply.

and for small business owners:

• American Express Business Gold (20,000 bonus Amex points)
• American Express Business Platinum (50,000 bonus Amex points)

The conversion rate from American Express to Hilton Honors points is 1:2.

Click here to read our detailed summary of all UK credit cards which can be used to earn Hilton Honors points.