The Spanish hotel company Sol Meliá has announced financial results that have exceeded expectations for the first half of 2000. Consolidated net profits grew to 9.850 million pesetas - 59.2 million euros -, an increase of 74% over the same period in 1999. Consolidated revenues rose to 63,576 million pesetas - 382.1 million euros -, a 26% increase over the previous year.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for Sol in the first half of 2000 reached 19,300 million pesetas - 116 million euros -, a 41% increase over 1999.

The results have been due in part to the excellent performance of hotels in the European City Division both within Spain and in destinations such as London, Paris and Brussels, where the hotels acquired by the company last year are beginning to generate considerable revenues due to the superior average room rates they are able to command.

The impressive results are also due to a good performance in the European Resort Division especially in Spain, but with the exception of the Canary Islands, an area in which the company operates a large number of its resort hotels. Mention must also be made of the contribution of a clear recovery in the hotels operated by the company`s Americas Division.

Shareholder dividends distributed by Sol Meliá increase by 50%:
The Sol Meliá Ordinary General Shareholders` Meeting held in May in the Meliá Confort Palas Atenea Hotel in Palma de Majorca, approved the distribution of 23% of available net profits as dividends to shareholders.

The pay-out was equivalent to 20.57 pesetas - 0.12 euros- per share, an increase of 50% over the previous year. The company thus achieved its stated commitment to make an annual dividend pay-out to shareholders of between 20 and 25% of net profits.

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