Hilton is stepping into the lifestyle hotel market with a fresh approach aimed at college towns. They are launching a new brand called Undergraduate by Hilton, which will complement their existing Graduate brand, focused on smaller college areas.
A Hilton spokesperson shared that the company is always looking for ways to better serve its guests. They aim to create new experiences for travelers, though they didn’t disclose many details about the new brand just yet.
Reports say Undergraduate by Hilton will offer more affordable rates and a simpler operation compared to Graduate. It aims to cater to smaller markets, appealing to budget-conscious travelers. At the start of the year, Matt Wehling, Hilton’s SVP of development for the U.S. and Canada, highlighted their focus on these secondary markets, where hotel owners appreciate quick-launch opportunities.
Kevin Osterhaus, the president of Hilton’s lifestyle brands, emphasized that Hilton is keen on expanding in the lifestyle segment through partnerships and new hotel openings. In fact, he noted that their collection brands represent significant potential growth areas. Earlier this October, they introduced the Outset Collection, which targets boutique hotels offering upscale designs and unique stories.
Since acquiring the Graduate brand for $210 million in 2024, Hilton has seen significant expansion, especially in states like Texas and Colorado. This move aligns with recent trends showing a rising demand for lifestyle hotels, particularly among younger travelers seeking unique experiences. A survey from Statista indicated that nearly 58% of travelers under 30 prefer boutique hotels over traditional chain options.
As the landscape of hospitality evolves, Hilton’s strategy reflects a growing interest in personalized and culturally rich travel options. By targeting college towns, they are tapping into vibrant markets filled with youthful energy and community spirit, setting themselves up for success in this niche.
