The hotel company Sol Meliá has ended 1999 achieving the objectives that had been set for the year with operating profits before interest, amortisation and taxes (EBITDA) of 33,348 million pesetas - 200 million euros -, an increase of 37% over 1998. Consolidated revenues for the company grew to 109,572 million pesetas - 659 million euros -, a 19% increase over the previous year.

Net consolidated profits for Sol Meliá in 1999 stood at 15,565 million pesetas -93.5 million euros-, a 20% increase over 1998.

Excellent performance of Spanish business and leisure tourism:

The excellent operating results were due to the incorporation of new hotels and the excellent performance of hotels that the company owns in Spain in both the business and leisure hotel markets.

Share price growth:

The shares in Sol Meliá, the first Spanish hotel company to be quoted on the stock markets, saw an increase of 13.41% in their value during 1999, reaching a price of 11.25 euros by the end of the year.

For the year 2000 to date, the value of Sol Meliá shares has increased to 12 euros, a further increase of 6.67%. Of 23 financial analysts currently covering the stock, 17 recommend buying Sol Meliá shares, 5 think it better to hold and only one recommends selling.

Growth in Europe and Latin America and the launch of the Meliá Boutique Hotel:

After the consolidation of the merger with Inmotel Inversiones and the take-over of Meliá Inversiones Americanas (MIA), Sol Meliá has become both an owner and manager of hotel properties.

The company ended 1999 having added a total of 27 hotels in Argentina, Belgium, Croatia, Cuba, the Dominican Republic, France, Greece, Mexico, Portugal, Spain, Tunisia, the United Kingdom and Venezuela, 13 of which are owned by Sol Meliá.

Particularly significant were the purchases of the Meliá White House in London, the Meliá Mexico Reforma in Mexico City and 9 hotels in the centre of Paris, milestones that represent the beginning of a new phase for Sol Meliá as a hotel owner.

2000: Forecasts point to an excellent year for tourism

Sol Meliá has begun the year 2000 with agreements signed to add a further 71 hotels over the next two years, 9 of them to be owned by the company. The hotels are located in Belgium, Brazil, Cuba, Egypt, Germany, Italy, Morocco, Mexico, Panama, Portugal, Puerto Rico, Spain and Tunisia.

Growth priorities for the year focus on major European cities, Latin America and the Caribbean, where the company will soon inaugurate the Meliá Lima (Peru) and the Meliá Panama Canal (Panama), and the Mediterranean area.

The promising economic forecasts for the Spanish market, the ongoing strong recovery in Latin America, the strength of the German market, whose most popular destinations remains Spain and the Caribbean, and the excellent terms of the agreements signed and under negotiation with tour operators for summer 2000, point to a very positive year for Sol Meliá given its strength in the major destinations in demand.

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