JLL: Hotel investors targeting cap rates of 5.9% in San Francisco

Realopedia Global Real Estate Portal

In its December 2015 Hotel Investor Sentiment Survey, Jones Lang LaSalle (JLL) noted that a net balance of 63% of survey respondents are positive about the short term (six months) prospects for hotel performance in San Francisco, while a net balance of 50% are positive about the medium term (two years) prospects. Initial yields (cap rates) targeted by investors in San Francisco are about 5.9%. Collectively, the survey respondents expect that initial yields will remain unchanged in the short term. According to JLL’s proprietary indicator, the hotel investment cycle in San Francisco is characterised as being at a late stage of an upturn – although this is not necessarily the house view.

Source : JLL/December 2015/San Francisco/HOT