Hotel Management & Investment Company to Grow Portfolio By Nearly 30% and Expand Internationally
PHILADELPHIA, PA, June 07, 2022 (GLOBE NEWSWIRE) — HHM and Urgo Hotels & Resorts (“Urgo”) have entered into a definitive agreement that, upon closing, will result in Urgo becoming a wholly owned subsidiary of HHM and, as part of the total consideration, the founding members of Urgo will become shareholders of HHM. The combined company will operate over 235 hotels in North America, with HHM expanding into Canada, entering new markets in the U.S., while adding mountain leisure, development and condo-hotel management capabilities to its portfolio.
This represents HHM’s second strategic M&A transaction in 2022, after it closed earlier in the year on its purchase of 25 long-term management agreements from White Lodging.
Notably, the Urgo transaction will mark HHM’s first international foray with its expansion into Canada. Urgo’s Canadian leadership team will continue to manage 17 hotels that are a mix of urban lifestyle, mountain leisure, and extended stay hotels throughout Quebec, New Brunswick, and Newfoundland. Urgo has particularly strong market penetration in Montreal and is one of the largest operators in Canada for major brands such as Marriott and Hilton.
In the United States, Urgo’s existing leadership team will continue managing 34 hotels that will expand HHM’s footprint in key gateway markets such as South Florida and Washington D.C., while building out in new leisure markets such as Big Sky, Lake Placid, Breckenridge, and Sonoma Valley.
“We are excited to work alongside the outstanding leaders at Urgo who share an entirely consistent culture and set of values with HHM, especially in how we work with owners and prioritize our team members,” HHM President and CEO Naveen P. Kakarla said, “and together we will continue to focus on building enhanced capabilities and services for our owners, new market growth for our platform, and more career growth for our associates.” “The owners and team members we have served for nearly 50 years at Urgo are part of our extended family,” said Donald J. Urgo, Founder, President & CEO of Urgo, “and after spending nearly two years getting to know Naveen and his leadership team, my family is confident in HHM’s ability to understand and embrace our history and our culture. Our collective leadership teams will develop capabilities to bring even more value to our hotel owners and associates.”
Don Urgo, Jr., will serve as Managing Partner of Urgo and maintain its offices in Greater Washington D.C., while Serge Primeau will continue leading Urgo’s Canadian operations, based in Montreal.
The transaction is subject to customary closing conditions and is expected to be completed in the third quarter of this year. Moelis & Company LLC acted as exclusive financial advisor to Urgo.
HHM is an award-winning hotel management and investment company that operates over 185 full-service and select-service hotels across 30 states and in virtually every major hospitality market from coast to coast. HHM is a leading manager of Marriott and Hilton hotels, while also operating over 30 independent luxury and lifestyle hotels ranging from The Rittenhouse Hotel in Philadelphia to The Joule Hotel in Dallas to The Whitney Hotel in Boston. HHM’s highly experienced and stable operating team is known for being nimble, accountable, and entrepreneurial in how they drive market-leading results for owners including publicly traded companies, private equity firms, and family office investors. Additional information on HHM can be found at hhmhospitality.com and independentcollection.com
About Urgo Hotels & Resorts
With an aggregate of more than 7,000 rooms operating and under construction in major markets throughout the U.S. and Canada, Urgo has been an industry leader in hotel management and development for more than four decades. Urgo has extensive experience with mountain leisure, ground up development of complex mixed use and condo-hotel projects, and resort properties. Urgo has earned numerous industry awards for its development and management achievements over the years, including four-time winners of Marriott’s Partnership Circle Award and Marriott’s Lifetime Partnership Circle Award, their highest honor for hospitality excellence. Urgo was founded by Donald J. Urgo and has a culture grounded in the core values of honesty, integrity, business acumen, diligence, and being of service to others.