Sol Meliá today announced financial results for the first quarter of 2001 which confirm the success of the integration of TRYP Hotels and the positive performance of the hotel industry. Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter reached 11,803 million pesetas - 71 million euros -, a 21% increase over the same period in the previous year.

Net profits rose to 5,087 million pesetas - 31 million euros -, an increase of 18% over 2000, while consolidated revenues grew to 39,062 million pesetas - 235 million euros -, 33% higher than the previous year.

The figures announced today are due in part to the benefits generated by the acquisition of the Tryp Hotel chain in the latter part of last year and synergies which are expected to provide cost savings of 1,100 million pesetas -7 million euros-.

The excellent results are also due to the strong performance in the company’s European City Division to which most of the hotels that formed part of the Tryp chain have been incorporated, confirming the positive trends seen in business travel throughout Europe and particularly in Spain.

The quarter also saw the confirmation of recovery in the Americas Division that began in 2000 and has led to improved performance in the hotels in the Division aided by the addition of new properties in Brazil.

Although the first quarter is traditionally slow for European resort hotels, many of which remained closed throughout the quarter, the results achieved by the European Resort Division have fulfilled expectations. The high occupancy levels achieved during the Easter holiday period and the positive trends in sales for the summer season auger more than satisfactory results for the year as a whole.

With regard to management fee income, special mention must be made of the high contribution made by the Cuban Division which has improved results by 29.5% due in large part to the recovery of the German and Canadian markets.

——-