operations — it ’ s critical .” Study Hotels ’ growth comes mainly through referrals from other universities now , McGowan explained . In the case of Yale , the university wasn ’ t looking for a new hotel . McGowan and Hospitality 3 created a “ market within a market ” and in doing so , they , he said , cracked the code of the college market . “ We ’ re finding ways , we ’ re creative and nimble and that ’ s what it takes . We invest a lot in the community and making sure that we make those connections — so it ’ s a bit old school ,” he said without a hint of irony .
Hilton ’ s purchase of Graduate Hotels was a lesson in Acquisitions 101 : it was buying a mature market leader with hotels from Oxford , England , to Oxford , Mississippi . “ Adding Graduate Hotels accelerates our expansion in the lifestyle space by pairing an existing much-loved brand with the power of Hilton ’ s strong commercial engine to drive growth ,” Hilton President and CEO Chris Nassetta said at the time , adding that the addressable market for the brand represents 400-500 hotels globally .
MARK OF DISTINCTION McGowan is well aware of Graduate Hotels ’ mark on the sector and though the two brands technically serve the same types of markets , there are vast distinctions , he said , believing Study and Graduate to be very different . “ Our brand is designed to accommodate curious lifelong learners ,” he said , adding that he was unaware of Graduate ’ s operating model . “ Stylistically , for sure , we ’ re very different .”
While Graduate Hotels ’ lobbies are like pep rallies , Study Hotels is much more reserved in style — less homecoming , more homey . The Study at Johns Hopkins , for instance , is a boutique adaptive reuse on the university ’ s Homewood Campus . In that way , Study Hotels is more of the location than about the location . Quality over kitsch . A traveler to The Study at University City might think it a premium hotel stay , rather
The Living Room at The Study at Yale , which opened in 2008 as Study Hotels ’ first property . Photo credit : Study Hotels
than a “ college-town ” hotel stay . “ It ’ s a sophisticated design style , the way we use natural light , for instance ” he said . “ We try to create inspired spaces .”
Study Hotels ’ mantra of “ read , rest and reflect ” comes through in the design , leather chairs and Ottomans rub up against windows and are backed by shelves of books . The hotel revels in analog : working desk surfaces encourage postcard or letter writing .
One of the major focuses of each of the hotels is food and beverage ; each has a signature restaurant . However , they aren ’ t just a matter of satiating guests , but to keep the hotels as year-round beacons for when school is out of session . “ They can ’ t be as successful in July or January when the school is out of session ,” McGowan said . “ You want to be able to establish your foothold with the local market , to make that connection .”
McGowan understands , relishes the spotlight now shining on what had been a niche sector . If Hilton ’ s acquisition of Graduate was proof of concept , it ’ s induced McGowan to start thinking differently
about Study Hotels ’ growth trajectory . “ We ’ ve been at it for a while and it ’ s proved successful ,” he said . “ Our balance sheet is pretty conservative , but it ’ s time for us to start thinking about expanding at a different pace than we have historically ,” a notable change of tune to how it began .
To achieve that , McGowan might have to go against his fixed notion of retaining ownership over everything — the bricks and mortar and operations . Hotel companies , like Hilton , like Marriott , figured out that to grow quicker , they ’ d have to pare down their touchpoints — less real estate , less operations , a focus on franchising . McGowan isn ’ t ready to give it all up lock stock and barrel , but isn ’ t averse to a pivot to allow Study Hotels to gain traction quicker . “ I can see entertaining the more asset-light strategy and in pursuing management contracts ,” he said . “ That makes sense now ,” alluding to an arrangement of purchasing real estate outright , as it has , or working with the universities on long-term ground leases .
McGowan called Study Hotels ’ pipeline “ pretty active ” with “ pretty strong interest ,” but was not inclined to volunteer specifics .
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