GBX Group Acquires 35-Room NYAH Key West Boutique Hotel in Old Town Historic District
KEY WEST, Fla. — GBX Group has acquired Not Your Average Hotel, known as NYAH Key West, a 35-room boutique hospitality property located at 420 Margaret Street in Key West's Historic Old Town, the firm and Marcus & Millichap announced Aug. 17.
A GBX fund, managed by GBX Fund Management Ltd., completed the purchase from a Miami-based partnership. The transaction marks the sixth project that GBX affiliates have acquired in Florida, further expanding the Cleveland-based firm's presence in the Key West market.
Property and Transaction Details
NYAH Key West sits at the corner of Fleming and Margaret streets within the Key West Historic District, encompassing approximately 14,161 square feet on 0.61 acres. The property, which traces its history to 1892, includes 35 guest rooms and is surrounded by the boutiques, galleries, restaurants, and historic architecture that define Old Town. The sale price was not disclosed.
Marcus & Millichap's Leo Reilly and Robert Hunter exclusively marketed the property on behalf of the seller. Will Langley, principal broker with Berkshire Hathaway HomeServices Keys Real Estate | Knight & Gardner Realty, worked alongside the Marcus & Millichap team to procure the buyer.
"This transaction reflects the unrelenting demand for Florida Keys real estate from buyers who are institutional in profile and looking to capitalize on rate growth and the market's unmatched barriers to entry," said Leo Reilly, Senior Associate in Marcus & Millichap's Fort Lauderdale office. "We look forward to seeing GBX's vision for this irreplaceable location and its unique layout realized."
GBX's Repositioning Strategy
For GBX Group, the acquisition fits a broader strategy centered on historic assets and public-private capital structures. As of January 2026, GBX had been involved in more than 200 real estate projects across 24 states, representing over $1 billion in capital deployed through a combination of equity, debt, historic tax credits, and public-private financing. The firm previously acquired Ambrosia Key West, located at 615 and 618 Fleming Street, in May 2025, reflecting an expanding footprint within the Key West submarket.
GBX says it intends to explore ways to reimagine the NYAH space while respecting the historic character and sense of place that define Key West. The firm frames the deal as a preservation-and-repositioning play, consistent with its track record in adaptive reuse projects leveraging historic tax credits.
"We're thrilled to add another project to our growing portfolio of assets in Key West," said Drew Sparacia, Founder and CEO of GBX. "Properties like NYAH have a character and story that simply can't be replicated. We're honored to have the opportunity to steward its next chapter and explore what this special place can become for future generations of visitors to Key West."
Key West Market Context
The acquisition comes against a backdrop of strong hotel performance in the Florida Keys. Key West recorded occupancy of 88.2%, an average daily rate of $500, and RevPAR of $441 in March 2026. Preliminary May 2026 data showed occupancy of 78.9%, up 7.8% year over year, with an ADR of $342 and RevPAR of $269. A CBRE forecast projected a 2026 average ADR of $365 for the Florida Keys, representing a 4.5% increase for the year.
At the national level, overall U.S. hotel occupancy rose 0.8% year over year in the second quarter of 2026, with demand growth of 1.7% outpacing supply growth of 0.4%, per CBRE data.
Key West's Historic District is recognized for its distinctive wood-frame "Conch" or Bahama houses and its history as a major port, wrecking center, customs station, and naval base. Influences from Cuban and Bahamian communities helped shape the city's economy and cultural identity — characteristics that continue to underpin its appeal as a tourism destination with limited developable land and high barriers to entry for new supply.
About the Brokers
Marcus & Millichap closed 8,818 transactions with a sales volume of $50.8 billion in 2025. The firm reported 2025 revenue of $755.2 million, up 8.5% from 2024, and operates more than 80 offices across the United States and Canada. Berkshire Hathaway HomeServices Keys Real Estate | Knight & Gardner Realty served as the local brokerage partner on the buyer side of the transaction.
