SOL MELIA GLOBAL DEVELOPMENTS UPDATE CORPORATE ANNOUNCEMENTS

Financial results for the first quarter of 2001 show that earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter reached 71 million euros, a 21% increase over the same period in the previous year. Net profits rose to 31 million euros, an increase of 18% over 2000, while consolidated revenues grew to 235 million euros, 33% higher than the previous year.

These figures are due to the strong performance in the company's European City Division, increased management fee income from the Cuban Division which improved results by 29.5% and 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 7 million euros.

The five-star, five-diamond Meliá Cabo has received the Standards Council of Canada's ISO 9002 certification in hospitality services. The Meliá Cabo Real is the first and only resort in Los Cabos, and the Baja Peninsula, to receive this prestigious designation.

The certification is the result of stringent audits and inspections to ensure top service levels at the resort. KPMG, an international, independent auditing firm that reviews corporate operations to verify customer service proficiency conducted the audits and presented the award to the Meliá Cabo Real Convention Center Beach & Golf Resort.

NEW HOTEL INCORPORATIONS

During the first quarter of 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 with an additional 43 properties.

Sol Meliá has signed a management agreement with Suncrest Hotels p.l.c, a subsidiary of AX Holdings Ltd to take over its first hotel in Malta: the 458 rooms Sol Suncrest. This strengthens the Group's leadership position in the Mediterranean where the Group already has hotels in ten countries, and dominance as the world's leading resort chain. Sol Meliá has two additional projects that have been already signed for Malta, and 35 other hotels scheduled to open in the Mediterranean over the next two years.

Sol Meliá has officially opened the Meliá Almuñécar Hotel it's seventh property in Granada and 38th property in Andalucia, located on the Playa de San, with 227 rooms and 5 meeting and banqueting rooms for up to 900.

Sol Meliá has opened the 300 rooms Meliá Jardines del Teide, it's ninth property in Tenerife, reaffirm's the Group's commitment to offering strong resort products and maintaining their global leadership role in the resort hotel market

Sol Melia announces the opening of three new hotels in São Paulo - the 164 rooms Meliá Confort Jardins, the 208 rooms Meliá Confort Tatuape and the 252 rooms Meliá Confort Higienopolis.

NEW PRODUCTS/FACILITIES

Meliá Cancun Convention Center Beach & Spa Resort will unveil 136 new "Servicio Real" (royal service) rooms in December 2001 offering lavish amenities for discriminating traveller. Guests will receive a special welcome gift in the room. The new Servicio Real rooms will feature luxurious bath and body amenities and guests can choose from an assortment of pillows from a menu for added comfort. Butler service, dry cleaning and shoeshine services are available. Guests can take advantage of express check-in and check-out until 3pm (upon request), unlimited soft drinks, coffee and tea, hors d' oeuvres and complimentary bar from 6-8 pm.

The five-star Meliá Mexico Reforma completed an $8 million renovation adding state-of-the art meeting facilities and luxurious accommodation. All existing guest rooms and suites and the lobby were refurbished. As part of the renovations, new facilities were added including 34 guest rooms, 5 new meeting rooms that give the hotel a total of 25 salons and 38,346 square feet of meeting space, and lobby piano bar. The property now has 488 renovated rooms, with 110 located on the Royal Service executive floor where guests enjoy a private reception area, express checkout, pillow menu, bar and butler service. A new restaurant, "La Albufera," based on the famous Spanish eatery of the same name, takes the place of the Oyster Bar. The Café Miro restaurant was renovated and expanded. In August 2001, a new covered swimming pool, with an open terrace and beautiful view of the city's Historical Center, and a complete spa will open.

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 more than 330 city and resort hotels in 30 countries 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.