KEY WEST, FL—The 215-room DoubleTree Grand Key Resort here has been acquired by Bethesda, MD-based RLJ 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. Upon completing an estimated $7-million renovation in 2015, RLJ Lodging expects the purchase price plus capital expenditures will represent a forward capitalization rate of approximately 8.0% based on the hotel's projected 2016 net operating income.

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