Hotel investors’ sentiment for six-month performance in the Americas increased for the first time following six consecutive semiannual declines, according to the biannual Hotel Investor Sentiment Survey from Jones Lang LaSalle Hotels. Although the outlook is still negative, the firm notes that it stands at a three-year high.
"While our newest survey reaffirms that investors believe that operating fundamentals still have further to drop over the short term, respondents’ medium-term (two-year) trading performance expectations improved for 80 percent of the Americas markets surveyed, with investor outlook for international gateway cities at the forefront," says Arthur Adler, managing director and CEO for Jones Lang LaSalle Hotels, in a statement. He notes that the improvement in sentiment is a clear indication that investors sense the Americas hotel market is getting closer to the point when RevPAR will flatten out and start to show marginal growth in year-over-year comparisons.
The largest shift in investment intentions was marked by the increase in "buy" sentiment, reaching its highest level in three years. This survey represents the second consecutive survey where investors’ "hold" sentiment decreased. The "buy" sentiment for New York jumped by over 20 percentage points as investors hope to acquire assets in the market at attractive discounts to replacement cost. The other cities attracting the highest investor attention for acquisitions in the U.S. are Los Angeles (61.9 percent), Washington, DC (58.6 percent), San Francisco (57.4 percent), San Diego (56.6 percent), and Boston (54.0 percent).
"Savvy buyers who are in a strong cash position and who can be aggressive will be able to benefit from the select buying opportunities that emerge," says Thomas Fisher, managing director for Jones Lang LaSalle Hotels, in a statement.
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