Sol Meliá Shareholders Approve Management And Results For 1999

The Sol Meliá Ordinary General Shareholders` Meeting held this Monday in the Meliá Confort Palas Atenea Hotel in Palma de Majorca, approved the seven points on the agenda, including the excellent financial results of the company in 1999. Earnings before interest, taxes, depreciation and amortisation (EBITDA) for 1999 reached 33,258 million pesetas - 200 million euros -, a 36% increase over 1998.

In response to the proposal by the Administrative Board, shareholders also approved a dividend pay-out of 3,500 million pesetas -21.03 million euros- to be charged to the year`s profits. 20.08 pesetas -0.12 euros- will be paid our on each share. The Meeting registered a quorum of 66,44 % made up of shareholders (0,26%) and their representatives (66,18%).

During the Meeting, the Chairman of Sol Meliá, Gabriel Escarrer Juliá, indicated “that the success of the company in 1999 is strongly linked to the consolidation of our national and international hotel development policies, resulting in the addition of 27 hotels to our portfolio over the year”.

He added that, “we have always sought quality rather than quantity, and that is precisely what has assisted Sol Meliá in setting up in first calls destinations for business and leisure travellers such as London, Paris, Brussels, Rome, Milan, Buenos Aires and Mexico City”.

Escarrer also emphasised “the outstanding results of the merger with Inmotel Inversiones and acquisition of Meliá Inversiones Americanas (MIA), operations that have allowed us to become not only a hotel manager, but also a hotel owner”.


“The financial strength that this has brought us has helped to produce a great year that has ended with 262 hotels in our portfolio in 27 countries, as well as a significant position in the world ranking of hotel companies as we moved up to seventh by market capitalisation”.

The excellent results have also had a positive effect on the Sol Meliá share price, which increased by 13.41% over 1999, reaching a price of 11.25 euros at the end of the year. From the beginning of the year to 25th. May, the Sol Meliá share price rose by a further 15%, up to 12,9 euros. During the current year the share price has reached a maximum of 13.94 euros.


As established in article 153.1 b) of Company Law, the Administrative Board has been granted permission to carry out a capital increase, in one or several stages, up to an amount equivalent to half of the existing capital at the time of authorisation, within a five-year period beginning today. Shareholders also authorised the Administrative Board to issue convertible bonds, within a period of five years.

Finally, shareholders approved the Sol Meliá transmittable stock option plan, valid before 1st. January 2000, and the executive bonus system which will be applied in 2000 and referenced to share value.

Sol Meliá currently provides more than 260 hotels in 27 countries.