KEY WEST, FL—The Parrot Key Resort has sold for $100 million. Northwood Investors sold the hotel to Hersha Hospitality.

Parrot Key Resort sits on five acres of waterfront property and 75% of rooms offer direct access to the beach and water views. The hotel has 148 units, including one-and two-bedroom suites that hold bragging rights as some of the largest rooms in Key West.

According to JLL, which represented the seller, the resurgence of resorts may be one factor behind growing interest in the Florida Keys' lodging market. The firm also cites high yields driving investors to pursue hotel acquisitions in the tropical market.

“The Florida Keys is a market that investors are very excited about and we're seeing a spike in competition to place capital and secure hotel assets,” says JLL managing director Gregory Rumpel. “The market's revenue per available room (RevPAR) has increased 16.5 percent during the past year and we expect this upward trend to continue.”

Parrot Key Resort's amenities include restaurant and tiki bar Café Blue, four private swimming pools, a fitness center, waterfront sun-bathing terraces, and water sport rentals including kayaks, paddle boards, and jet skis. Rumpel worked with vice president Carolina Lacerda on the transaction.