PHILADELPHIA, PA, June 08, 2022 — 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.