Urgo Hotels Secures Controlling Interest/Long-term Management Contract for Montreal International Airport JV

Urgo Hotels, a major developer, owner and operator of upscale hotels, today announced that it, along with a group of private investors, has acquired the majority interest of its joint venture partner, the Real Estate Group of Marathon Asset Management, in the 160-room Courtyard by Marriott and the adjoining 169-suite Residence Inn by Marriott at the Montreal International Airport, based on a substantially discounted value of $39 million, or $118,000 per room. Under terms of the transaction, Urgo Hotels gained a controlling interest in the complex, as well as a long-term management contract.

“This has been a great asset for us since we opened in 2007, and we could not pass up the opportunity to gain controlling interest” .The unique, two-hotel complex is situated on a 3.25-acre land parcel at 7000 Place Robert-Joncas. The hotels share public space and common areas, including some 6,000 square feet of function space, a large indoor swimming pool and health club, as well as all back-of-the-house areas. Located at Trans-Canada Highway exit 63 and Cavendish Boulevard, the hotel complex is within a few minutes’ drive of the Montreal International Airport and Technopark Saint-Laurent, Canada’s largest business park devoted to aerospace, biotechnologies, pharmaceutical, information and telecommunication technologies industries.

“This has been a great asset for us since we opened in 2007, and we could not pass up the opportunity to gain controlling interest,” said Kevin Urgo, a principal of Urgo Hotels. “With the long-term management contract in place, we will further capitalize on the synergies and economies of scale that are inherent in this unique two-hotel project.

“We have seven hotels in Canada, six of them in the province of Quebec. This investment demonstrates our deepening commitment to this growing market,” he added. “We believe there is substantial demand for quality, premium-branded hotels in Canada, and we intend to continue to look for opportunities to develop, acquire and third-party manage hotels both in Canada and in the United States.”

Courtyard by Marriott | The six-story Courtyard by Marriott Montreal Airport offers 160 contemporary guest rooms with flat-screen televisions and spacious bathrooms with large granite vanities, full-length mirrors and bright lighting. Rooms feature the Marriott Revive bed, complete with luxurious sheets and a white custom duvet to ensure a peaceful night’s rest. Appealing to both business and leisure travelers, other in-room amenities include a large, well-lit work desk, dual telephone lines with voicemail, high-speed Internet access, cable/satellite television and complimentary in-room coffee.

Residence Inn | The Residence Inn Montreal Airport is the area’s first upscale extended-stay hotel targeted to guests who stay five nights or longer. Providing the brand’s latest innovations, each of the 169 studio, one- and two-bedroom guest suites features five “zones,” for cooking, dining, working, relaxing and sleeping, to ensure maximum comfort and convenience. Highlights include granite countertops, luxurious bedding, and a multi-functional living area with a flat-screen TV. The Residence Inn provides a complimentary hot breakfast and evening hospitality hour.

The two hotels have separate entrances and lobbies, but share certain services and public space, including a complimentary airport shuttle; complimentary parking; Orville, an upscale French restaurant; lobby lounge; indoor swimming pool and spa; health club; and a business center. The complex offers 6,000 square feet of state-of-the art meeting space, capable of accommodating meetings and banquets of more than 300 people. Both hotels are smoke-free.

About Urgo Hotels Canada, ULC | Urgo Hotels Canada, ULC, is a subsidiary of Urgo Hotels, a Bethesda, Md.-based hotel company that develops, owns and operates distinctive and unique hotels in major markets in Canada and the United States. The company’s other Quebec province properties include the Marriott Residence Inn and Homewood Suites by Hilton in Mont-Tremblant, the Marriott SpringHill Suites in Old Montreal, the historic district in downtown Montreal, and the Quebec City Courtyard by Marriott. Other company properties in Canada include the St. John’s, Newfoundland Courtyard by Marriott. The company also owns and/or operates upscale hotels in the United States for a total of 29 hotels with more than 4,300 rooms and has other properties under construction and under development in the U.S. and Canada.