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NEW YORK CITY-Jones Lang LaSalle Hotels, the North American headquarters for which is located here, is now making available the results of its international study of the opinions of hotel owners/investors regarding future trends in the market. A spokeswoman for LaSalle Hotels tells GlobeSt.com the survey, the Hotel Investor Sentiment Survey, originated in Sydney at the global headquarters for this arm of the overall LaSalle company. The results indicate that cities like New York are favored as gateways in urban markets, but investors are looking to Europe for the short term and Asia and the South Pacific for medium term performance.

According to the spokeswoman for LaSalle Hotels, New York is one of the “most sought after cities for hotel investment in the United States.” The report shows that San Francisco, however, leads in trading performance expectations in the short and medium term and LA beats New York on this count. Washington, DC and Boston also score higher than New York in the short term, but not in the medium term. New York has a lower median internal rate of return than Atlanta, Boston, Chicago, Dallas, Hawaii, LA, Miami, Orlando, Phoenix, Washington, DC, Canada, the Caribbean and Central and South America.

“The Americas is expected to be the most active market in the short tem; 45% of those surveyed have a propensity to buy here,” writes Arthur Adler, managing director of the Americas in a statement furnished by LaSalle Hotel’s spokeswoman. “Of the American cities, New York is one of the preferred markets. New York has an extremely diversified demand base, virtually no seasonability and has high barriers. As a result, yields are expected to rise as income grows.”

The HISS shows that of the investors interested in the New York hotel market, which has a very high occupancy rate throughout the year while charging some of the highest rates in the country, 38% intend to buy, 5% intend to build, 42% intend to retain holdings and 15% intend to sell. The anticipated median cap rate, initial yield, for new acquisitions is 10% for New York. “New York has strong occupancy and average daily rate performance expectations in the short and medium term, ” adds Adler.

New York joins Boston and San Francisco on the list of American cities seen as being in a dramatic late upturn in the hotel market cycle. “Notwithstanding New York’s strong trading performance, the city is still in an important upturn position in the market cycle,” adds Adler. On the same chart that depicts New York in this upturn, Atlanta is shown as being in what is described as a “trough,” while Orlando, Miami and Chicago have peaked. Dallas and Phoenix are reportedly in an early downturn, while the Caribbean is in a late downturn. Hawaii, Central and South America and Canada are listed as being in an early upturn with LA and DC in a medium upturn.

The places in the Americas with the strongest buy sentiment, according to survey results, are Hawaii and LA. Those in the Americas with the strongest sell sentiment are Dallas, Miami, Orlando and Phoenix. Overall, Europe is where 66.6% of those surveyed express a desire to expand their portfolios. The HISS shows the strongest growth in medium term performance is expected to be lead by South East Asian and Australasian markets.

According to LaSalle’s spokeswoman, gateway urban markets are preferred, a high selling point for New York. According to the survey, 75.4% seek first class hotels; 44.6% seek delux hotels; 30.8% seek boutique resorts. Overall, globally speaking, 46.7% of investors are significantly interested in expanding their portfolios.

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