JLL: Hotel investors targeting cap rates of 6.3% in Munich
In its December 2015 Hotel Investor Sentiment Survey, Jones Lang LaSalle (JLL) noted that a net balance of 50% of survey respondents are positive about the short term (six months) prospects for hotel performance in Munich, while a net balance of 61% are positive about the medium term (two years) prospects. Initial yields (cap rates) targeted by investors in Munich are about 6.3%. A net balance of 5% expect that initial yields will fall in the short term. According to JLL’s proprietary indicator, the hotel investment cycle in Munich is characterised as being at a late stage of an upturn – although this is not necessarily the house view.
Source : JLL/December 2015/Munich/HOT