Hersha Hospitality Trust, Philadelphia, announced a definitive agreement to buy the 148-key Parrot Key Hotel & Resort in Key West, Florida, for US$100 million.
Parrot Key is situated on 5 oceanfront acres (2 hectares). The hotel operated at an ADR of US$230.52 and occupancy of 92.3% in 2013, and the property is forecasting RevPAR growth in excess of 10% for 2014. Parrot Key was fully renovated in 2012 and requires no immediate capital expenditures. The property will continue to be independently operated and managed by Northwood Hospitality.
“The acquisition of Parrot Key further demonstrates our commitment to recycle capital from the sale of stabilized assets into higher-growth opportunities,” said Jay Shah, Hersha’s chief executive officer. “Parrot Key and the Key West market possess very attractive investment characteristics. The hotel is a high-quality oceanfront asset, independently managed and well positioned in the market to leverage high-rated transient demand. The controlled guestroom inventory and consistent year-round demand make Key West very desirable from an investment perspective.”