Sol Melia’s Net Profits Increase By 20.9% At The End Of The Third Quarter

During the first nine months of this year, and coinciding with the end of the summer season, Sol Meliá has achieved a net profit of 4,992 million pesetas, a 20.9% increase over the same period in 1997 The strong diversification of the company’s hotel portfolio, with 42% city hotels and 58% resort hotels, as well as a wide geographic distribution in 25 countries on 4 continents, together with the constant take-over of new hotel operations, has allowed the company to achieve expected performance for the period and its objective of 20% growth in profits.

The excellent market conditions seen in the European Resort and European City Divisions, the location of 75% of the company’s rooms, together with improvements in Cuba and stability in the Americas, have more than compensated the decreases seen in business in Asia.

During the first nine months of the year, Sol Meliá has opened 42 hotels with a total of 15,449 rooms, raising the total number of rooms world-wide to 65,084 in 25 countries. The company also has another 6 hotels scheduled to open before the end of the year.

Sol Meliá has also signed contracts for the incorporation of an additional 32 hotels over the next two years and is in an advanced phase of negotiations with a further 33 hotel projects.

Sol Meliá has also recently signed an agreement to take a 22% stake in the creation of a new Spanish tour operator, Viva Tours, together with Iberia Airlines and other companies from the Spanish tourism industry.


The company has also reached sales and marketing agreements with American Airlines, Portugalia Airlines, Continental Airlines and LanChile.