JLL: Hotel investors targeting cap rates of 6.4% in Beijing

Realopedia Global Real Estate Portal

In its December 2015 Hotel Investor Sentiment Survey, Jones Lang LaSalle (JLL) noted that a net balance of 60% of survey respondents are negative about the short term (six months) prospects for hotel performance in Beijing, while a net balance of 20% are positive about the medium term (two years) prospects. Initial yields (cap rates) targeted by investors in Beijing are about 6.4%. A net balance of 80% expect that initial yields will rise in the short term. According to JLL’s proprietary indicator, the hotel investment cycle in Beijing is characterised as being at an early stage of a downturn – although this is not necessarily the house view.

Source : JLL/December 2015/Beijing/HOT