US: Hersha Hospitality Trust (HHM) will more than double its portfolio with its planned acquisition of Urgo Hotels & Resorts, later this year.
Urgo Hotels & resorts, a hotel management and development company, has a portfolio of urban lifestyle, mountain leisure and extended stay hotels in Canada and the US.
After the acquisition Urgo Hotels & Resorts will become a wholly owned subsidiary of HHM. The founders will become HHM shareholders.
The acquisition will mark the first step into Canada for HHM, as well as several new US markets. Between the two companies there will be a portfolio of 235 hotels.
Naveen Kakarla, HHM president and CEO said: “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 prioritise our team members. 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.”
Urgo’s Canadian properties are in Quebec (with a strong market in Montreal), New Brunswick and Newfoundland. The current Canadian leadership team for Urgo will continue to lead operations for the 17 properties. The US Urgo team will also continue to manage its portfolio of 34 properties, including South Florida and Washington DC.
Donald Urgo, founder, president and CEO of Urgo will remain as managing partner in the company’s Maryland office.
Urgo said: “The owners and team members we have served for nearly 50 years at Urgo are part of our extended family. 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.”
Last year SAN reported the launch of the dual-branded Hilton Garden Inn and a Homewood Suites in Montreal, which is owned by Joe and Sam Scalia of Devmont Construction and managed by Urgo Hotels & Resorts.
Hersha Hospitality Trust is a self-advised real estate investment trust in the hospitality sector, which owns and operates upscale, luxury and lifestyle transient hotels in urban gateway markets and coastal destinations. The company’s 36 hotels are currently located in New York, Washington, DC, Boston, Philadelphia, Miami, and on the West Coast.
