Ocean Properties, which has headquarters in Delray Beach andPortsmouth, NH, is a privately held owner and developer of hotelsthroughout North America. It was founded in 1950 by the ThomasWalsh family, and, according to published reports, owns and/oroperates more than 100 properties aggregating approximately 20,000rooms in the US and Canada. Calls to Ocean Properties and Starwoodwere not returned by deadline.

The three-story asset, across from Smathers Beach and a milefrom Key West International Airport, was built in 1993. Although itsuffered significant damage from Hurricane Katrina, it re-openedjust days after the storm hit. According to a Starwood website,renovations began on Nov. 9 and are scheduled to continue throughthe end of this month. In a press release announcing this sale,however, Starwood says the property "will be completely renovatedby Ocean Properties."

Starwood is under agreement to sell a portfolio of 38 propertiesto Host Marriott Corp. in a deal estimated at more than $4 billion.In early December, it sold the 250-unit Sheraton Hotel at FortLauderdale International Airport to HEI Hospitality for about$127,800 a key.