A Pennsylvania-based hotel chain has purchased the Parrot Key Resort and Hotel in Key West for $100 million from developer Pritam Singh.
The resort had been on the market for four months and the deal with Hersha Hospitality Trust of Philadelphia closed on Wednesday, Singh said.
"Parrot Key and the Key West market possess very attractive investment characteristics," Hersha's CEO Jay H. Shah said in a prepared statement. "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. This acquisition increases our presence in South Florida."
Parrot Key sits on five bayfront acres and is the most recently built waterfront hotel in Key West, boasting the largest rooms and the most oceanfront suites in Key West, Hersha officials stated in its press release.
The hotel charges an average daily rate of $230 and had occupancy of 92.3 percent in 2013. The Key West market is currently forecasted as one of the strongest growth markets in the country, Hersha said.
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, according to Hersha, which owns 50 hotels across the country.
Parrot Key is the third major resort in Key West to sell within the past year. The Southernmost Hotel Collection in Key West sold for $184 million in August. The Pier House Resort and Spa in Key West sold for $90 million in May.
Singh tore down the aging Hampton Inn hotel in 2006 to make way for Parrot Key, which was initially transient condos but later turned into a hotel complex.
"It is bitter sweet," Singh said. "But that is what I do. I build things. I hold onto them for a while. And then I sell them eventually. They are like children. You watch them go off to college and you hate to see them go, but you know it's time."