KEY WEST, FL—The 215-room DoubleTree Grand KeyResort here has been acquired by Bethesda, MD-basedRLJ Lodging Trust for $77 million or approximately$358,000 per key.

The new owner says that in addition to upgrading the property,RLJ plans to replace the hotel's existing management company. Uponcompleting an estimated $7-million renovation in 2015, RLJ Lodgingexpects the purchase price plus capital expenditures will representa forward capitalization rate of approximately 8.0% based on thehotel's projected 2016 net operating income.

“We are excited to add an additional Key West asset to ourportfolio at a significant discount to both replacement cost andrecent per-key trades,” says Thomas J. Baltimore,Jr., president and CEO of RLJ Lodging Trust. “We expectthat our knowledge of the market along with the implementation ofvarious initiatives will create additional upside at thisstrategically-located hotel.”