Boston a Hot Market for Hotel Investors

BOSTON-The local hotel market has been dubbed a key performer in Jones Lang LaSalle’s newly released Hotel Investor Sentiment Survey. “Investors prefer properties in Boston; New York; Los Angeles; San Francisco; and Washington, DC, which have high barriers to entry,” states JLL Hotels managing director Arthur Adler.

Performance, of course, was a prime criterion for the more than 800 investors surveyed for the report, and Boston was noted for its “strong occupancy and average daily rate performance expectations in the short and medium term,” says EVP Arthur Buser. Along with the other cities listed above, Boston demonstrated better-than “average yield growth, and is in an upturn position in the market cycle.”

More than 40% of respondents indicated a “buy” intention for the city, which, according to the survey, offers a 10.5% median cap rate for new acquisitions.