Hotel Capstone, a long-standing hotel located on the University of Alabama campus in Tuscaloosa, is set to reopen as Graduate by Hilton Tuscaloosa in 2027. The conversion will bring Hilton’s lifestyle brand for university markets to one of the most prominent college towns in the southern United States, reinforcing the company’s growing focus on campus-adjacent hospitality.
The hotel has historically served as a central venue for university events, visiting faculty, alumni gatherings, and football weekends, making it deeply embedded in campus life. Its transformation into a Graduate by Hilton property signals a strategic repositioning rather than a complete departure from its roots. The rebrand is expected to modernize the guest experience while maintaining close ties to the University of Alabama community.
Graduate by Hilton and the Tuscaloosa Market
Graduate by Hilton is known for its design-forward approach that draws heavily on local culture, school traditions, and regional identity. Properties typically feature interiors inspired by university history, social spaces designed to attract both guests and locals, and a tone that blends nostalgia with contemporary hospitality. In Tuscaloosa, that approach aligns naturally with a city where college athletics, alumni culture, and year-round campus activity drive consistent travel demand.
The Graduate brand became part of Hilton’s portfolio in 2024, following its acquisition of Graduate Hotels. Since then, Hilton has positioned the brand as a cornerstone for larger university markets where demand extends beyond peak seasons. The conversion of Hotel Capstone fits this strategy, allowing Hilton to leverage an existing, well-located property while refreshing its appeal to leisure travelers, business guests, and returning alumni.
Renovation and brand integration are expected to take place over the next two years, with reopening scheduled for 2027. Once completed, Graduate by Hilton Tuscaloosa is expected to play a key role in the city’s hospitality landscape, particularly during major sporting events and university milestones.
A Broader College-Town Strategy
The Tuscaloosa project also comes amid broader brand development efforts within Hilton’s college-focused portfolio. Hilton is preparing to launch a new hotel brand called Undergraduate by Hilton, according to a source familiar with the plans, as Skift reported.
The lifestyle brand will target small college towns and is intended to complement Graduate Hotels, which focus on larger university markets. Undergraduate by Hilton would become Hilton’s 27th brand, featuring a more accessible price point and a simplified operating model designed for secondary and tertiary markets. Launch timing has not yet been determined, the source said.
While Graduate by Hilton Tuscaloosa reflects Hilton’s investment in a major university destination, the planned Undergraduate brand underscores the company’s broader ambition to capture demand across a wider spectrum of college towns.
Together, these initiatives highlight how campus-driven travel continues to shape hotel development strategies, with Tuscaloosa positioned as one of the next beneficiaries of that trend.
