Graduate Hotels

Campus Lodging Assets (CLASS®) Program

How Class® Works

Primary roles & responsibilities

University

AJ Capital

University

Ground lessor

University leases land for the hotel to AJ Capital as a part of partnership, but retains ownership of that land, and receives annual or upfront ground rent from AJ Capital.

AJ Capital

Ground lessee/hotel owner

AJ Capital owns the leasehold interest of the land, allowing right to operation and revenue. Pays annual or upfront ground rent to university partner.

Hotel brand

The Graduate Hotels® brand, which will serve as the value proposition for the hotel's guest experience.

Hotel operator

The on-property execution of the hotel's hospitality brand standards and services.

Typical Program
PHASES OF DEVELOPMENT

Bringing CLASS® partnerships to life.

  • Ground lease & financing

    Ground lease & financing

    The hotel project site is conveyed via a ground lease to AJ Capital for an average of 70-99 years. AJ Capital fully finances the transaction.

  • Vision, design, & planning

    Vision, design, & planning

    AJ Capital designs the hotel to fit Graduate Hotels’ hyper-localized hospitality mode. AJ Capital takes all steps to obtain permits and execute the hotel.

  • Construction & preparation

    Construction & preparation

    AJ Capital oversees the end-to-end construction plan for the hotel. As full owner of the project, AJ Capital assumes all risk for construction completion and budget.

  • Graduate Hotels® launch

    Graduate Hotels® launch

    AJ Capital launches the new Graduate Hotel property—remaining responsible for operations and financials. AJ Capital owns and operates the project during the term of the ground lease.

  • Hotel operation & maintenance

    Hotel operation & maintenance

    During the ground lease term, the university receives annual lease payments, and AJ Capital receives the hotel’s net cash flow. The hotel reverts to the university after the lease.

Meet our CLASS®-Mates

Open Open & Operating Under Development Coming Soon

Launched in 2014, Graduate Hotels is a new, boutique hotel collection targeting dynamic university towns across America. View Graduate’s Portfolio

Want to learn more about CLASS® Program partnerships?

We’d love to hear from you.

Contact Us