BETHESDA, Md. /MONTREAL, Quebec, January 12, 2005 � Urgo Hotels, a major developer, owner and operator of upscale hotels, today announced that it has acquired, in partnership with a major real estate opportunity fund, the Residence Inn by Marriott, Downtown Montreal for $25 million Canadian ($ 19.7 million U.S.).  The extended-stay hotel will immediately undergo a $1 million Canadian renovation/upgrade program.
�We have a great deal of confidence in the Montreal market, and are actively pursuing other opportunities in Canada, as well,� said Kevin Urgo, senior vice president.  �There is an undersupply of quality international branded hotels in the country.   Our goal is to expand our growing portfolio to take advantage of the current market conditions.�

The renovation/upgrade program will completely make-over five floors of the hotel, including new bathrooms, soft goods and hard goods in the bedrooms and new finishes in the hallways and elevators.  �This upgrade will complete a total renovation of the hotel, which began last year,� he said.  �When this project is completed within the next few months, the hotel will be in like new condition.  We will undertake the renovation in phases so it will be essentially invisible to our guests.�

�Following the completion of the renovation, the Residence Inn by Marriott, Downtown Montreal will be well positioned to become a market leader,� said Serge Primeau, vice president of Canadian operations.  �With our other hotels in the region, we will be able to continue our strategy of taking advantages of synergies in purchasing, marketing and management to increase market share and produce significantly more cash flow.�

Located at 2045 Peel Street, Montreal, Quebec, in the heart of Montreal�s business and entertainment district, the 25-story, 190-unit property features 1,500 square-feet of meeting space, an indoor swimming pool and sun deck, fitness center and Mikasa, an upscale Japanese restaurant. 

 �We are very active in the Canadian hotel market and expect to announce additional transactions in the near future,� Urgo said.  �The economy and dollar are strengthening, and the outlook for quality, upscale hotels like the Residence Inn, Downtown Montreal is very favorable.�

Urgo Hotels is a Bethesda, Md.-based hotel company that develops, owns and operates distinctive and unique hotels under Marriott and Hilton flags in major markets in Canada and the United States.  The company owns and/or operates 17 upscale hotels with 2,845 rooms in the United States, and has two properties under construction and five hotels under development in the U.S. and Canada.