Some 79 percent of CEOs helming real estate and hospitality companies indicated they were optimistic about the economy, according to a survey conducted by Big Four firm Ernst & Young.
In E&Y’s latest Capital Confidence Barometer, a joint venture between the audit firm and the Economist Intelligence Unit, senior executives in real estate and hospitality exhibited greater optimism than their counterparts in other industries, of which just 66 percent felt positive about an economic recovery.
In all, E&Y polled 1,000 companies across the globe. By comparison, just 57 percent of hospitality and real estate executives polled were optimistic about the economy only six months ago.
In addition, 42 percent of real estate and hospitality execs said they are focused on raising or investing capital.
“The outlook for M&A activity in the hospitality and real estate sectors seems to be brightening,” said Michael Fishbin, global hospitality leader at E&Y. “In October 2010, only 20 percent of executives polled expected to execute a transaction in the next six months, but that figure more than doubled in our April 2011 survey.”
According to the survey, of the top five areas of focus for hospitality and real estate companies over the next 12 months, cash flow preservation and liquidity are the prime concerns, followed by cost reduction and operational efficiencies.
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