MONTREAL - There's gushing and even gloating about the Montreal indie band that beat out some of the biggest names in the music industry to win the most prestigious prize at the Grammys.

The City of Montreal's website features a red banner across its home page that reads, in all caps, "BRAVO ARCADE FIRE FOR ITS ALBUM OF THE YEAR GRAMMY!''

That tribute came one day after members of Arcade Fire delivered a bilingual shout-out to their home town while receiving the best-album prize.

"Thank you, merci, to Montreal, Quebec, for taking us and giving us a home and a place to be in a band,'' said the band's frontman, California-born Win Butler, as he accepted the award in Los Angeles.

Arcade Fire's upset win prompted a torrent of online comments to social-networking sites from people puzzled by the choice. Many wondered just who these winners were. The victorious album, "The Suburbs,'' beat out entries from much better-known artists including Eminem, Lady Gaga, Katy Perry and Lady Antebellum.

But in Canada, and especially in Montreal, there is celebration.

The success of Arcade Fire's first album, "Funeral,'' earned Montreal a reputation as an important hub in the indie-music scene.

Many Montrealers now feel personally invested in the band's success, having watched them go from playing church basements to sold-out stadiums.

No one was more pleased than Luc Berard, the owner of L'Oblique, a record store that has supported the band since their humble beginnings nearly a decade ago.

"It's a victory for the music and it's a victory for a band that did not compromise," he told CTV Montreal's Stephane Giroux.

Arcade Fire, he said, chose to stick to its indie roots, and away from manufactured pop music.

Butler, who was raised in Texas, assembled the group together with his wife Regine Chassagne, and rose through the ranks of the city's creative hub in Mile End.

"The anglo underground scene is like a minority within a minority within a minority," said Dan Seligman, co-founder and creative director of Pop Montreal festival.

Their album the Suburbs was the band's third try at a Grammy, after previous nominations for their albums Funeral and Neon Bible.

One Montreal entertainment critic called it a watershed moment for the group.

"The Grammy win for best album holds weight," said the Gazette's T'Cha Dunlevy.

"I think we're going to see their album sales go up markedly. This will be a turning point for them."

Others pointed out that Arcade Fire is only the best known of a host of Montreal rock bands that are developing loyal followings, prompting questions about what makes the city special.

Butler assembled the band's current formation after arriving in Montreal, where he married his wife Regine Chassagne. He told reporters assembled at the Grammys what the place meant to him.

"I moved to Montreal almost 10 years ago now, which is about the longest I've lived anywhere. I grew up in the suburbs in Houston, Texas and (Montreal) is really a home,'' Butler said Sunday night.

"Regine is from Montreal and the rest of us kind of moved there. There's such a beautiful arts scene and music and dance (and) a lot of creative forces there, so I think everything that our band is, kind of came from that city.''

Added Chassagne: "Montreal is a great place to have a normal life.''

Prime Minister Stephen Harper released a statement congratulating all of Canada's Grammy winners and his heritage minister, James Moore, even boasted on his Twitter page: "A thought: I'm a big U2 fan, but perhaps U2 should be opening for Arcade Fire on July 30th in Moncton instead of the other way around.''