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.