After the successful completion of the recent take-over and merger process with the hotel companies Meliá Inversiones Americanas and Inmotel, Sol Meliá has announced net profits of 3,443 million pesetas, 20.75 million euros for the first quarter of the year, an increase of 44.6% over the same period in 1998.

In the first three months of the year, operating revenues for the new company reached 23,256 million pesetas, 140 million euros, an increase of 21.3% with respect to the previous year.

The healthy performance of the economy in general, and the positive performance and results of many companies in particular, have produced significant increases in hotel occupancy and revenues in the company`s European City Division.

Increases in demand in the company`s European Resort Division have also had a positive effect on results, influenced by the success of company sales programmes and a positive response to efforts to reduce seasonality, increasing holiday demand in the most important feeder markets, favourable weather conditions and the competitive value-for-money products and destinations offered by the company, particularly in its hotels in Spain.

10 new hotels in the year to date:

In the year to date, Sol Meliá has incorporated 10 new hotels to its portfolio, 6 of which joined the company in the first quarter. The company currently operates 253 hotels in 25 countries on four continents with a total of 67,843 rooms.

The company is scheduled to incorporate a further 8 hotels before year end, and also has signed agreements to operate a further 21 hotels from January 2000. In both cases the number may be increased by any agreements that may be signed in the forthcoming months.

Company expansion objectives for the coming months are focused on the search for opportunities in Europe, mainly in the capitals and major cities in the region.

Negotiations to acquire a European hotel chain:

Finally, in relation to news that has appeared recently in the media concerning the possible acquisition by Sol Meliá of a European hotel chain, the company has confirmed that it “is holding advanced negotiations with a European hotel chain to acquire its hotel real estate property”.

The negotiations, adds, “continue, but since there are also another two large international hotel companies competing with Sol Meliá to acquire the chain, the final outcome of the negotiations is still unable to be confirmed. Regardless of the final outcome of the negotiations, Sol Meliá is holding contacts at different levels with other owners of hotel properties located in a number of capitals and major cities in Europe.”

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