Nashville-based real estate investment firm, Aj Capital Partners, has solidified its position as a major player in the hospitality sector, earning industry-wide recognition for the significant sale of its Graduate Hotels brand to Hilton Worldwide. This landmark $210 million deal, expertly advised on by the Dentons hospitality and leisure team, has been lauded as one of the “most influential hotel industry deals in 2024” by Hotel Investment Today.
The successful brand divestiture by AJ Capital Partners was not a standalone transaction. It was strategically executed in conjunction with a complex recapitalization of Graduate Hotels Real Estate Fund III LP. This intricate financial maneuver involved securing new equity investments from two prominent private equity funds. Furthermore, the deal required meticulous negotiation to obtain 17 lender consents and amendments on existing loans. Adding to the complexity, a new cross-collateralized loan, secured by four hotels, was established, alongside securing consents from four university ground lessors. This multifaceted approach underscores AJ Capital Partners’ sophisticated financial and operational capabilities in navigating large-scale transactions.
The magnitude and impact of the Graduate Hotels brand sale were further underscored when it was honored with the prestigious “Merger & Acquisition of the Year 2024” award at the recent Americas Lodging Investment Summit (ALIS). This accolade is a testament to the strategic vision and execution prowess of AJ Capital Partners, as well as the expert guidance provided by Dentons. The award not only recognizes the financial scale of the deal but also its influence and strategic importance within the evolving hospitality landscape.
The Dentons team, a multidisciplinary group of legal experts, played a crucial role in facilitating this complex transaction for AJ Capital Partners. The Hospitality and Leisure partners Adam Docks and Jordan McCarthy spearheaded the team, demonstrating their deep industry expertise. They were supported by a robust team including senior managing associate Adam Dennett, managing associate Kristen Lucas, and associate Bridget Guien. The cross-practice nature of the deal leveraged the expertise of corporate, employment and labor, privacy and cybersecurity, real estate, tax, and venture technology specialists within Dentons, ensuring all facets of the transaction were expertly managed. This comprehensive legal support was instrumental in the seamless execution and ultimate success of the Graduate Hotels sale for AJ Capital Partners.
AJ Capital Partners’ successful sale of Graduate Hotels highlights their strategic approach to investment and brand development within the hospitality industry. Their ability to identify, cultivate, and realize significant value from brands like Graduate Hotels demonstrates their leadership and acumen in the competitive real estate investment market. This deal not only marks a significant financial achievement for AJ Capital Partners but also sets a benchmark for strategic transactions within the hotel industry.
