JLL: Hotel investors targeting cap rates of 5.3% in London

Realopedia Global Real Estate Portal

In its December 2015 Hotel Investor Sentiment Survey, Jones Lang LaSalle (JLL) noted that a net balance of 48% of survey respondents are positive about the short term (six months) prospects for hotel performance in London, while a net balance of 33% are positive about the medium term (two years) prospects. Initial yields (cap rates) targeted by investors in London are about 5.3%. A net balance of 8% expect that initial yields will rise in the short term. According to JLL’s proprietary indicator, the hotel investment cycle in London is characterised as being at a late stage of an upturn – although this is not necessarily the house view.

Source : JLL/December 2015/London/HOT