Harrisburg, Penn.-based HHM, the management and development affiliate of hotel real estate investment trust Hersha Hospitality Trust, have announced plans to acquire Urgo Hotels & Resorts.
According to a news release announcing the deal, Urgo will become a wholly owned subsidiary of HHM. The founders of Urgo — which also focuses on hotel management and development — will become HHM shareholders once it closes, which is expected to happen in the third quarter of this year. The combined company will have a portfolio of 235 hotels and expand HHM's presence into Canada for the first time and several new U.S. markets.
“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 in the news release. “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 current Canadian leadership team for Urgo will continue to lead operations for their 17 properties in that country, which include "a mix of urban lifestyle, mountain leisure and extended-stay hotels throughout Quebec, New Brunswick and Newfoundland" with a "particularly strong market penetration in Montreal."
In the U.S., the existing Urgo team will continue to manage a portfolio of 34 properties that represent new and key markets for HHM, including South Florida and Washington, D.C.
Donald J. Urgo, who is founder, president and CEO of Urgo and will remain on as managing partner in the company's Bethesda, Maryland, office.
“The owners and team members we have served for nearly 50 years at Urgo are part of our extended family,” Urgo said in the release announcing the deal. “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.”
Earlier in the year, HHM announced a deal to buy 25 long-term management agreements from White Lodging.