JLL: Hotel investors targeting cap rates of 6.5% in Shanghai

Realopedia Global Real Estate Portal

In its December 2015 Hotel Investor Sentiment Survey, Jones Lang LaSalle (JLL) noted that a net balance of 45% of survey respondents are negative about the short term (six months) prospects for hotel performance in Shanghai, while a net balance of 100% are positive about the medium term (two years) prospects. Initial yields (cap rates) targeted by investors in Shanghai are about 6.5%. A net balance of 63% expect that initial yields will rise in the short term. According to JLL’s proprietary indicator, the hotel investment cycle in Shanghai is characterised as being at an early stage of an upturn – although this is not necessarily the house view.

Source : JLL/December 2015/Shanghai/HOT