The Graduate Hotels brand was founded by private equity firm AJ Capital Partners, which owns 31 of the 34 existing Graduate locations. According to AJ Capital, “Each Graduate Hotel is custom designed and programmed to celebrate the distinct history, traditions and charms of the university and the surrounding community.” However, in the instances outlined below, AJ Capital’s relationship with the surrounding community has been more contentious than celebratory.

Palo Alto, CA:

In 2019, AJ Capital evicted tenants in some of the most affordable rental housing in Palo Alto to convert their building into a Graduate Hotel. The city said the conversion would violate the zoning ordinance, but Palo Alto Weekly, citing documents obtained by Public Records Act request, reported that AJ Capital’s attorney “both threatened the city with litigation and negotiated with tenants with the goal of silencing their opposition.” The Graduate Palo Alto eventually opened in January 2023. But in June 2026, Palo Alto Weekly reported that dozens of service workers were suddenly laid off and replaced by temporary workers.

Miami, FL:

In 2022, AJ Capital evicted an immigrant-owned bakery in the rapidly gentrifying Little Haiti neighborhood. On July 2025, 2024, the Miami Herald reported on a lawsuit alleging that AJ Capital had conspired with an engineering firm to “weaponize” the city’s inspection process to declare the building unsafe to evict the bakery and replace it with a music and entertainment venue. The Herald reports that in one email made public in the lawsuit, “an AJ Capital executive wrote of the bakery, ‘Sounded like there might be a strategy to get them out. Anything I can do to help?’” In another, “a consultant suggested the landlords could ‘control’ an engineering firm to ‘produce the exact report we need’ for a government-mandated 40-year recertification for the bakery site.” The bakery owners and AJ Capital reached a settlement in the lawsuit in March 2026, after three and a half years of court proceedings.

East Lansing, MI:

In April 2024, the city of East Lansing notified AJ Capital that the Graduate East Lansing was in violation of conditions of its site plan & special use permit approval from 2015 regarding traffic obstructions caused by its valet system, as well as the East Lansing Zoning Ordinance regarding the hotel’s failure to screen rooftop mechanical equipment. The Graduate failed to take action on the allegations for two years, missing multiple timelines and deadlines provided by the city. The hotel completed the rooftop screening sometime between March and July 2026, only after the city began legal enforcement action. As of August 2026, AJ Capital has yet to convince City Council to adopt its plan to fix the valet system; city officials said that the valet process in the latest plan “needs to be improved” since traffic spills into surrounding streets and even blocks the sidewalk.

Bloomington, IN:

In July 2024, Indiana Public Media reported on AJ Capital’s attempts to secure a historic building designation for the Graduate Bloomington. At the time of the report, the hotel was only six years old. According to the report, an AJ Capital representative admitted that the request was at least partially motivated by a desire to secure a liquor license for the hotel. Indiana law establishes that no venue within 200 feet of a church can obtain a liquor license if the church objects, but a loophole allows for liquor licenses in a historic district even over a church’s objection. The report quoted one Historic Preservation Commission member’s reply in a public hearing: “I know you’re here for a historic protection so you can get a liquor license. I think the most kind I can be is to describe that as disingenuous. For you to seek to gain the approval of this organization is offensive. Right? Like…insulting.”

Read the full AJ Capital Partners Community Report here.