JLL: Hotel investors targeting cap rates of 5.3% in Paris
In its December 2015 Hotel Investor Sentiment Survey, Jones Lang LaSalle (JLL) noted that a net balance of 43% of survey respondents are positive about the short term (six months) prospects for hotel performance in Paris, while a net balance of 60% are positive about the medium term (two years) prospects. Initial yields (cap rates) targeted by investors in Paris are about 5.3%. A net balance of 12% expect that initial yields will rise in the short term. According to JLL’s proprietary indicator, the hotel investment cycle in Paris is characterised as being near the peak – although this is not necessarily the house view.
Source : JLL/December 2015/Paris/HOT