Sol Meliá Increases EBITDA By 18% And EBITDAR By 33% In The First Half Of 2001

Sol Meliá has announced results for the first half of the year 2001 which confirm the successful integration of the Tryp Hotel chain and the positive performance of the city hotel business, particularly in Spain.


Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to 22,629 million pesetas - 136 million euros - an 18% increase over the same period in the previous year.


Earnings before interest, taxes, depreciation, amortisation and rentals (EBITDAR) achieved by Sol Meliá during the first half of the year reached 26,589 million pesetas - 160 million euros -, a 33% increase over the previous year. Consolidated revenues rose to 82,195 million pesetas - 494 million euros -, an increase of 29% over the same period in the year 2000.


Net profits for the first half of the year were 8,760 million pesetas - 53 million euros -, 11 % less than in 2000. The decrease was due to the effect of the extraordinary profits obtained in the year 2000 with the sale of hotels in the Dominican Republic and the Canary Islands.


The positive results announced by the hotel company confirm the generation of the synergies expected after the purchase of Tryp Hotels. These synergies are expected to generate cost savings of at least 1,100 million pesetas -7 million euros- by the close of year 2001.

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The results have also been achieved in large part due to the excellent performance of the company’s European City Division, especially in Spain. Hotels in the division saw an overall increase in RevPar (revenues per available room) of 8.6%, a figure that reached 12.9% in those hotels previously operated by the Tryp Hotels group.


The high occupancy levels achieved over the Easter period also favoured hotels in the European Resort Division, producing a 6.6% increase in RevPar (19.3% in TRYP hotels). RevPar in the Americas Division also grew by a significant 13.5%.


Management fee revenues were boosted by the contribution of the Cuba Division which saw growth of 30.7%, assisted by recovery in the German and Canadian feeder markets.


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