MONTRÉAL Urgo Hotels has acquired the majority interest of its joint venture partner, Real Estate Group of Marathon Asset Management, in a pair of hotels near Montréal-Pierre Elliott Trudeau International Airport.
The 160-key Courtyard by Marriott Montreal Airport and the adjoining 169-key Residence Inn Montreal Airport traded for a combined US$39 million, or US$118,000 per key. Under terms of the transaction, Maryland-based Urgo has gained a controlling interest in the complex, as well as a long-term management contract.
The two-hotel complex shares public space and common areas, including 6,000 sq. ft. of function space, an indoor swimming pool and health club, as well as all back-of-the-house areas.
“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,” says Urgo Hotels principal Kevin Urgo. “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.
Urgo Hotels has seven properties in Canada—six of them in the province of Québec. “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,” Kevin Urgo says.