After successfully completing the absorption of Meliá Inversiones Americanas (MIA) and the merger with Inmotel Inversiones, the new Sol Meliá has registered operating profits before interest, amortisation and taxes (EBITDA) of 6,764 million pesetas - 40.65 million euros - at the close of the second quarter, a 32 % increase with respect to the same period in 1998.

During the first six months of the year total operating revenues reached 50,610 million pesetas - 304.17 million euros-, an increase of 19.5 % over the first half of 1998.

Margins have improved from 25% to 27% over the same period, assisted by a parallel containment of costs.

Net profits for the first semester were 5,667 million pesetas -34.05 million euros-, 12% higher than in the first six months of 1998.

The excellent figures achieved by Spanish tourism in general during the first semester, with a total of 26.42 million hotel guests, 13.6% above 1998 numbers, have given a considerable boost to occupancy and revenues from both city and resort hotels in the European divisions given the fact that the major part of the hotels in the divisions are located in Spain.

Another significant contribution to the improved results has been made by the increases in management fee revenues from hotels in the Americas and Cuban divisions.

The extra contributions received from hotels that are new to the portfolios of the two divisions has led to management fee revenues increasing by 15% and 36%, respectively.

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