In focus on core mission and operating efficiencies, UC leases Kingsgate Hotel and Conference Center

On March 13, the University of Cincinnati and AJ Capital Partners (owners of the boutique hotel collection, Graduate Hotels) closed on a 99-year sale/lease of its Kingsgate Hotel and Conference Center located at 151 Goodman Drive.

The transaction provides an up-front payment of $23.5 million. These funds and annual proceeds from investments will go to support the university’s teaching, research and service mission as outlined in university strategic direction, Next Lives Here.

According to Robert Ambach, senior vice president for administration and finance, the transaction allows the university to efficiently focus on its primary mission while working with a partner who will deliver a unique, customize experience for the campus and wider community.

 He explained, “As an institution, the university is dedicated to undergraduate, graduate and professional education and research. We are committed to fulfilling that mission as efficiently as possible, serving as responsible stewards of our resources and the investments made in education by the public and by our students and their families.”

He added, “At the same time, this change meets the needs of our campus and wider community in a very dynamic way. The Graduate Hotels experience for guests and visitors  draws upon what is unique about each locale and university in order to customize the experience. The décor and experience for guests and visitors will draw upon the history of both the university and city. It’s going to be an exciting transformation, especially appropriate for UC during our much-anticipated bicentennial year.”

The university originally built and dedicated the hotel in 1999. UC initially outsourced its operations in order to meet the need for full-service guest accommodations.  

“We are excited to introduce Graduate Hotels to Cincinnati and honored to serve the Bearcat family, traveling public, and campus community for generations to come,” says Tim Ryan, senior vice president of acquisitions. “This public-private partnership with UC epitomizes our mission to energize and complement world-class universities with hospitality that reflects and celebrates what makes each community so special.”

AJ Capital Partners assumes both ownership and operations upon the transaction closing. The hotel will remain continuously open and operating even as it is converted to become part of AJ Capital Partners’ Graduate Hotels collection.

Ambach added, “The environment has changed, and the university no longer needs to own a hotel to meet the needs of our community. This move now allows us to generate investment and to refocus resources on our essential purpose as a leading academic and research institution.”

The university engaged real estate firm JLL to manage a highly competitive procurement, which resulted in the selection of AJ Capital Partners.  

"Many universities' real estate portfolios offer tremendous opportunities to unlock value and redirect resources to core mission needs," said Chris Roth, chief operating officer of JLL's Public Institutions practice. "We appreciate the opportunity to help UC better align capital assets to meet its mission."