JLL: Hotel investors targeting cap rates of 6.6% in Los Angeles
In its December 2015 Hotel Investor Sentiment Survey, Jones Lang LaSalle (JLL) noted that a net balance of 60% of survey respondents are positive about the short term (six months) prospects for hotel performance in Los Angeles, while a net balance of 45% are positive about the medium term (two years) prospects. Initial yields (cap rates) targeted by investors in Los Angeles are about 6.6%. A net balance of 14% expect that initial yields will rise in the short term. According to JLL’s proprietary indicator, the hotel investment cycle in Los Angeles is characterised as being at a late stage of an upturn – although this is not necessarily the house view.
Source : JLL/December 2015/Los Angeles/HOT