Industry has decided now is the right time to invest

The hospitality industry is boosting confidence for the future by investing money in buildings and facilities, says a major bank.

A survey by Lloyds concluded that sensible control of cash-flow and pricing has allowed hotels and others in the leisure industry to re-invest profits.

Many more firms have been increasing investment ratherthan reducing it in the past six months.

Michael Riding, managing director of Lloyds commercial service, said: "There has been widespread investment withinthe industry as businesses refurbish and renovate in advanceof the economic downturn. The short-term knock on profits is outweighed by the long-term benefits of being able to charge higher prices for qualityproducts."