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Investors expect Americas’ hotel cap rates to trend downward


Hotel Investor Sentiment Survey | December 2014

What are the hot markets? Where are investors planning to develop or acquire? Find the answers in our latest Hotel Investor Sentiment Survey.

Browse global and regional snapshots on this site or get the full HISS report.​​​

Americas Highlights

  • Hotel investors across North America remain optimistic about the outlook for hotel investments, and investors’ hotel performance sentiment has improved from the last survey.
  • For the next six months, investors have the most favourable view on San Francisco, Seattle and Houston; in the two-year timeframe the Caribbean ranked highest, followed by Los Angeles, Vancouver, and San Francisco.
  • Investors’ targeted cap rates compressed by 10 basis points since the last survey period at 7.3% for acquisitions across the region, indicative of lower cost of both debt and equity capital, which will result in rising real estate values.​

American Stage in the Investment Cycle^

Americas Leveraged IRR Requirements 2000 to 2014^

Americas Trading Performance Expectations 2000 to 2014^

Americas Cap Rate (Initial Yield) Requirements 2000 to 2014^

Americas Short Term Cap Rate Trend^

HISS December 2014 - Infographics