21% GROWTH RESULTS FOR SOL MELIÁ IN FIRST QUARTER 2001

Consolidated Company Revenues Grow By 33% In The Same Period


Leading European hotel chain, Sol Meliá - which has a portfolio of 10 Asian properties - today announced it's first quarter 2001 financial results of 71 million euros before interest, taxes, depreciation and amortisation (EBITDA). This represents a 21% growth for the Group over the same period in the previous year.

Net profits reached 31 million euros, representing an 18% growth over 2000, while consolidated revenues rose to 235 million euros, a 33% increase over 2000.

These results are due in part to the benefits generated by the acquisition of the Tryp Hotel chain last year and synergies, which are expected to provide cost savings of 7 million euros. The purchase of the Tryp hotel chain has reinforced Sol Meliá's ranking amongst the top ten hotel companies as well as its position as the second largest hotel company in Europe and the largest resort hotel company in the world.

The 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 this 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.

Management fee revenues were aided by the Cuba Division which saw a revenue growth of 29.5% due in large part to the recovery of the German and Canadian markets.

During the first quarter of year 2001 Sol Meliá has added 10 new hotels to its portfolio which now stands at 342 hotels with 82,827 rooms in 30 countries on 4 continents. As at 31st March 2001, the company also had signed agreements to add 79 more hotels over the next two years. Sol Meliá is also in advanced stages of negotiations for an additional 43 properties.

Sol Meliá is the leading hotel group in Spain in both the city and resort hotel markets, the leading chain in Latin America and the Caribbean, the second largest hotel group in Europe and the tenth largest worldwide. The company is also the world's largest resort hotel chain. Sol Meliá has a portfolio of city and resort hotels under the brand names of Meliá, Sol, TRYP and Paradisus hotels.

Its properties in Asia include Gran Meliá Jakarta, Meliá Bali (incorporating The Garden Villas), Meliá Benoa All-Inclusive Resort (Bali), Sol Lovina (Bali), Meliá Purosani (Yogyakarta), Meliá Panorama (Batam), and Sol Elite Marbella (Anyer) in Indonesia; Meliá Hanoi in Vietnam; Meliá Kuala Lumpur in Malaysia; and Sol Twin Towers (Bangkok) in Thailand. Sol Meliá has signed contracts to take-over and manage a further 80 hotels by the year 2002.