WASHINGTON, DC—When Hersha Hospitality Trust acquired Washington DC's St. Gregory Hotel last month for $57 million, it would have been understandable to assume the REIT wouldn't be investing much in upgrades. After all, the previous under had competed a renovation of its rooms in Fall 2014. But no -- Hersha Hospitality Trust plans to reposition the hotel's restaurant, bar and lobby.

Ditto when DiamondRock Hospitality Co. acquired the fee simple interest in Sheraton Suites Key West for $94 million, or $511,000 per key. Key West, FL, is the highest RevRAP market in the US, CEO CEO Mark Brugger said at the time of the deal's announcement.

But more, apparently, can be wrung from this asset. DiamondRock believes that as the hotel is currently flagged it is generating profit margins that are almost 1,000 basis points lower than DiamondRock's other independent hotel in the market. Once the REIT completes a $5 million planned capital improvement program, it expects the hotel's profit margins will increase by approximately 500 basis points.

These two examples show the precise calculations hotels are making when it comes to renovations these days. This is not to say that in the past hotel owners scribbled back-of-the-envelop numbers to decide whether to renovate and then merrily set forth on building. It is, though, more pronounced now as the hotel industry rushes to catch up with the other asset classes that have recovered from the recession.

"This is definitely something we are seeing more of as the industry recovers from the downturn," Tom Baker, managing director of Savills Studley 's Professional Hospitality Group, tells GlobeSt.com.

"During the downturn a lot of owners pulled back in terms of capital expenditures and now that the recovery is in place they are looking for opportunities to tweak product to increase RevPar penetration," he said.

And the calculations about what will drive RevPAR are very precise, ranging from increasing the suite count in a hotel because they run higher than the average rooms or bumping up the amenities, such as putting in new TVs in the room or upgrading the bar.

"Anything that the owner deems the customer is willing to pay a bit more money for," Baker says.

While new TVs for a property may not seem that much on the grand scale, it can make a difference, Baker adds. "By increasing a hotel's RevPar you also bring up a portfolio's RevPar."

And an increasing portfolio RevPar is definitely a metric that analytics like, he says.

Certainly CEO Brugger described in painstaking detail the improvements the REIT has been making in various properties in its portfolio in DiamondRock's last earnings call.

A sample: The REIT fully renovated approximately 90 guest rooms at the Boston Hilton, that sell for a $30 to $50 premium as a premium room type.

In Chicago, it renovated at one of its properties that top 5 floors, with 175 guestrooms, plus all 25 suites. It now charges a $35 premium for these upgraded rooms. The REIT is also adding eight incremental rooms at its New York City Courtyards and four rooms at the DC Westin.