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

Realopedia Global Real Estate Portal

In its December 2015 Hotel Investor Sentiment Survey, Jones Lang LaSalle (JLL) noted that a net balance of 33% of survey respondents are positive about the short term (six months) prospects for hotel performance in Toronto, while a net balance of 22% are positive about the medium term (two years) prospects. Initial yields (cap rates) targeted by investors in Toronto are about 7.0%. 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 Toronto is characterised as being at a late stage of an upturn – although this is not necessarily the house view.

Source : JLL/December 2015/Toronto/HOT