JLL: Hotel investors targeting cap rates of 4.9% in Hong Kong
In its December 2015 Hotel Investor Sentiment Survey, Jones Lang LaSalle (JLL) noted that a net balance of 30% of survey respondents are negative about the short term (six months) prospects for hotel performance in Hong Kong while a net balance of 22% are positive about the medium term (two years) prospects. Initial yields (cap rates) targeted by investors in Hong Kong are about 4.9%. A net balance of 5% expect that initial yields will rise in the short term. According to JLL’s proprietary indicator, the hotel investment cycle in Hong Kong is characterised as being near the peak – although this is not necessarily the house view.
Source : JLL/December 2015/Hong Kong/HOT