JLL: Hotel investors targeting cap rates of 6.0% in New York City
In its December 2015 Hotel Investor Sentiment Survey, Jones Lang LaSalle (JLL) noted that a net balance of 5% of survey respondents are positive about the short term (six months) prospects for hotel performance in New York City, while a net balance of 14% are positive about the medium term (two years) prospects. Initial yields (cap rates) targeted by investors in New York City are about 6.0%. A net balance of 17% expect that initial yields will rise in the short term. According to JLL’s proprietary indicator, the hotel investment cycle in New York City is characterised as being near the peak – although this is not necessarily the house view.
Source : JLL/December 2015/New York City/HOT