JLL: Hotel investors targeting cap rates of 6.5% in Milan
In its December 2015 Hotel Investor Sentiment Survey, Jones Lang LaSalle (JLL) noted that a net balance of 16% of survey respondents are positive about the short term (six months) prospects for hotel performance in Milan, while a net balance of 55% are positive about the medium term (two years) prospects. Initial yields (cap rates) targeted by investors in Milan are about 6.5%. A net balance of 10% expect that initial yields will fall in the short term. According to JLL’s proprietary indicator, the hotel investment cycle in Milan is characterised as being at an early stage of an upturn – although this is not necessarily the house view.
Source : JLL/December 2015/Milan/HOT