Sol Meliá has achieved profits after tax for 1997 of 5,723 million pesetas, an increase of 20.04% over the previous year. Income for management services in 1997 reached 13,370 million pesetas, an increase of 16.4% over 1996. These income improvements were mainly due to the incorporation of new hotels, management and sales improvements, and an excellent year for both business and leisure tourism demand.

Amongst the different Company Divisions, the most outstanding performance has been seen in the Americas Division, where management fees have increased by 30%. Income in the European Resort and European City Divisions has also increased due to better hotel occupancy and the incorporation of new hotels.

In spite of the financial crisis in Asian markets, the company’s Asian Division registered an increase in management fees of 46% due to the full incorporation of the Gran Meliá Jakarta in 1996 and the renovation work carried out in the Meliá Bali.

Sol Meliá, the first Spanish hotel company to be quoted on the stock exchange saw its share value increase by 42% in 1997. In the first two months of this year, the share price had increased to 7,300 pesetas.

Growth and development in Latin America and Europe:
Sol Meliá has incorporated 27 new hotels in during 1997, a figure that was well above expectations for the year. 10 of these hotels were incorporated in the company’s Americas Division.

Sol Meliá has signed agreements with 36 additional hotels which will be incorporated in the future. The Company is also immersed in negotiations with a further 35 properties in Latin America and Europe - two of the companies priority areas for growth.

To consolidate this growth, the Company will continue with its policy of managing and franchising independent hotels, the creation of joint ventures with other hotel companies, leaders in their local markets, and focusing on the incorporation of large hotel complexes.

As part of the growth and development strategy, Sol Meliá has recently formed a new Company named Meliá Inversiones Americanas (MIA) along with Inmotel Inversiones and the Escarrer family. MIA will focus on the purchase or construction of quality hotels in Latin America and the Caribbean. Sol Meliá thus guarantees the management of all of the hotels acquired by MIA and those that it may develop in the future.

Latin America is one of the world’s fastest growing tourism destinations and is a key market for Sol Meliá, producing more than 30% of the Company’s income.

Sol Meliá is the leading Spanish hotel company with 224 hotels in 24 countries providing more than 52,000 hotel rooms.

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