Graduate by Hilton Portfolio of Seven Hotels Secures $303 Million Refinancing from Barings and Aareal Capital Corp.

Barings and Aareal Capital Corporation have announced a $303 million debt package to refinance a portfolio of seven Graduate by Hilton hotels to an affiliate of AJ Capital Partners. The refinancing package includes mezzanine and senior mortgage components, with Barings funding the mezzanine portion and Aareal Capital Corporation originating the senior mortgage.

The portfolio, known as the Graduate by Hilton 7-Pack, consists of seven full-service hotels with a total of 1,340 rooms. These properties are located in university-anchored markets across the United States. Each hotel is situated within approximately one mile of a major university and is surrounded by a variety of shopping, dining, and entertainment options. The hotels also feature meeting spaces and on-site food and beverage services.

CBRE advised on the financing for the transaction. This deal is part of Barings’ broader real estate debt platform, which includes over $32.1 billion in assets as of June 30, 2025. The platform focuses on direct origination and investment in loans secured by commercial real estate.