JLL: Hotel investors targeting cap rates of 7.0% in Chicago

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In its December 2015 Hotel Investor Sentiment Survey, Jones Lang LaSalle (JLL) noted that a net balance of 48% of survey respondents are positive about the short term (six months) prospects for hotel performance in Chicago, while a net balance of 30% are positive about the medium term (two years) prospects. Initial yields (cap rates) targeted by investors in Chicago are about 7.0%. A net balance of 17% expect that initial yields will rise in the short term. According to JLL’s proprietary indicator, the hotel investment cycle in Chicago is characterised as being at a late stage of an upturn – although this is not necessarily the house view.

Source : JLL/December 2015/Chicago/HOT