Jones Lang LaSalle unveils the latest edition of our Hotel Investor Sentiment Survey.

Highlights:

Global trading sentiment has improved compared to October 2012 with short term investor expectations up 4.9 percentage points to 28.2% and medium term up 3.5 points to 40.0%.

Global short term trading expectations are now at their highest level since October 2007, with medium term expectations also trending higher after a period of consolidation over the last three years.

The Americas ranks highest for short term trading at 43.6% whereas investors favour the major gateways over the medium term at 55.9%. 

Investor expectations for global leveraged IRRs recorded a 90 basis point contraction to 15.9% as downside risks moderated and the global economy steadied. This is a similar level to April 2011, which represented the lowest point since the survey's inception in 2000.

Leveraged IRR expectations are lowest for EMEA at 13.8% and highest for the Americas at 18.1%. 

Global cap rate expectations recorded a 10 basis point softening to average 7.7%. Cap rate expectations are lowest for EMEA and the major gateways at 7.1%. 

Investors expect global cap rates to contract slightly over the next six months with signifi cant downward shifts evident in the Americas and the major gateways.



We have made a number of changes to this edition of the Hotel Investor Sentiment Survey, which benchmarks 75 global hotel markets. Feature markets include Los Angeles, Sydney and Dublin.

Read the full report HERE