DiamondRock Buys Key West Hotel For $94 Mln

(RTTNews) - DiamondRock Hospitality Co. (DRH) Wednesday said it recently acquired the fee simple interest in the 184-suite Sheraton Suites Key West in Key West, Florida, for $94.0 million.

The purchase price represents a 12.8 multiple on forecasted 2015 hotel earnings before interest, taxes, depreciation and amortization of $7.3 million and a 7.1 percent capitalization rate on the hotel's 2015 forecasted net operating income.

DiamondRock is finalizing its plans to reposition and re-launch the hotel as an independent lifestyle resort, leveraging its high quality, superior room size, and beachfront location.

The hotel will continue to be managed by Ocean Properties, a leading operator of over 100 branded and independent hotels, including six Key West hotels.