London leads EMEA hotel investment market

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08/10/2014 Leave a comment

Hotel Investor Sentiment Survey shows rising confidence from investors in the London hotel market sector and an expectation of strong trading prospects over the next six months to two years.

Investors have most confidence in short term trading conditions in London, with 93.8 per cent of respondents believing trading will improve. There is also increasing expectation of investment profitability, with Internal Rate of Return (IRR) requirements standing at 10.1 per cent, compared to 13.4 per cent in JLL’s last investor survey.

The survey also shows that trading expectations throughout the rest of the UK remain promising. Strong business and leisure demand drives positive expectations in Edinburgh. Cap rates currently sit at 6.4 per cent compared to 7.3 per cent last year. This confidence is also replicated in Manchester with cap rates falling from 7.4 per cent in 2013 to 6.8 per cent this year. Fast road and rail connections from the city and an expanding airport provide unrivaled access to international markets.
Jones Lang LaSalle

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