Sizable Hotel Trades Expected in Second Half

LOS ANGELES-The horizon looks bright for the Los Angeles hotel market during the second half of the year. While hotel transaction levels in L.A. were quiet during the first half, this is expected to change given that the market ranked as the most hotly contested market in Jones Lang LaSalle‘s recent national hotel investment survey.

The city exhibited the highest ratio of buyers to sellers among the markets surveyed, and investor expectations for hotel performance in L.A. are among the highest in the Americas, with a positive net balance sentiment of 65.1% for the short term and 75% during the medium term for the city, JLL reports. As such, the investor outlook for L.A. is the highest among the West Coast cities surveyed, with the exception of San Francisco. The medium-term outlook marks a higher premium than in the Americas on average, suggesting that investors feel that L.A. still has significant hotel performance upside.