More than two thirds of hospitality executives are confident about the European industry's prospects for 2011, according to new research from DLA Piper.

Around a quarter of those who believe the sector is in better shape this year said improving operating performances of hotels was behind the "bullish attitude". Meanwhile, 31 per cent of those who participated in DLA Piper's survey believe that 2012 will be a vital year for the sector due to a more globalised market and the return of business travel.

Karen Friebe, partner and head of hospitality and leisure EMEA at DLA Piper, said: "These findings are broadly in line with trends that we have seen emerging in the hospitality sector over the past year. "The market has changed and organisations have had to deal with that - whether by reassessing their approach to investments and joint ventures, or by taking a look at their operations and making the necessary changes to streamline the business."

Elsewhere, research by KPMG has found that global deals in the hotel and lodging sector increased by 47 per cent in 2010, compared with the previous year. Deals announced in the UK during the previous 12 months grew by nearly a quarter, with London market trading remaining "remarkably robust".

KPMG head of travel, leisure and tourism Richard Hathaway said: "In 2010, London continued to drive growth in the UK hotel deal market in a rather stable trading environment. "However, increased activity elsewhere needs to be put in the context of a sustained period of negligible activity in the US throughout 2008 and, in particular, in the first half of 2009 which included the short and sharp drop-off in deal activity for Asia Pacific in the first half of 2009."