DiamondRock Hospitality Co. has opened the Margaritaville Beach House Key West following a $3.5 million renovation of the former Barbary Beach House Key West. The oceanfront resort has 186 suites, a lagoon-style pool, a poolside restaurant and bar, a retail outlet and a fitness center. Other amenities include indoor banquet space and tropical gardens and courtyards with a 1,500-square-foot event space for smaller events.
"We are excited to begin our new relationship with Margaritaville at our Key West resort," said Mark W. Brugger, DiamondRock's president and CEO. "Margaritaville is synonymous with Key West and a leading leisure hotel brand that we expect will drive incremental demand to our resort and significantly enhance financial performance."
DiamondRock acquired the property for $94 million in 2015 and converted the Marriott-branded resort to the independent Barbary Beach House Key West in late 2019 following a renovation of the guestrooms and common areas. The company projects its incremental $3.5 million investment to turn the resort into the Margaritaville Beach House Key West will generate more than an 80 percent return for its shareholders. The resort is expected to generate nearly $14 million of earnings before interest, taxes, depreciation or amortization in 2021.