Leading European hotel group Sol Meliá Hotels & Resorts, which has a portfolio of 10 Asian properties, has reported signs of a gradual recovery after the strong drop in business post-September 11. Revenues for the first quarter of 2002 reached 227.3 million Euros, 3.2% less than in 2001, while RevPar (revenue per available room) for all of the company's hotels decreased by 4.8% compared to the first quarter of 2001. This figure, however, is a considerable improvement over the last quarter of 2001 when RevPar fell by 17.6%.
In the Sol Meliá European Resort Division, RevPar in the first quarter of 2002 fell by 0.5% after having seen a reduction of 15.9% in the last quarter of 2001.
In the European City Division, RevPar in the first quarter of 2002 fell by 5.4% compared to the same period in the previous year. The RevPar saw a 17.2% drop in the last quarter of 2001. The Division is still suffering the effects of September 11, particularly in major European cities such as Paris, London, Rome, Milan and Madrid that have a certain reliance on the American market.
The Americas Division, the area of the company that suffered the most impact of September 11 incidents, has begun to recover and has seen average occupancy grow to 69% for the first quarter of 2002.
RevPar for the Americas Division, however, fell by 15.1% compared to the first quarter of 2001, after having seen a reduction of 31.8% in the final quarter of 2001. Further improvements are expected for future quarters.
These figures confirm the projections made by Sol Meliá Hotels & Resorts at the close of 2001, which expects a full recovery from the crisis in the second half of 2002.
Earnings before interest, taxes, depreciation, amortisation and rentals (EBITDAR) for Sol Meliá Hotels & Resorts over the first quarter of 2002 reached 63.6 million Euros, 19.2% less than for the same period in 2001. Meanwhile, earnings before interest, taxes, depreciation and amortisation (EBITDA) reached 54.4 million Euros, a decrease of 23.3% over 2001. In the last quarter of 2001 compared to the same period in the previous year, the same figures fell by 40.4% and 79.5% respectively. This indicates that the impact of September 11 is beginning to weaken over time.
The net profits of Sol Meliá Hotels & Resorts during the first quarter of 2002 were 9.6 million Euros, 68.7% less than in the first quarter of 2001 when the company also generated extraordinary profits of 9.2 million Euros.
Sol Meliá Hotels & Resorts 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 third largest hotel group in Europe and the tenth largest worldwide. The company is also the world's largest resort hotel chain. Sol Meliá Hotels & Resorts has a portfolio of more than 350 city and resort hotels in 30 countries under the brand names of Meliá Hotels, Sol Hotels, TRYP Hotels and Paradisus Resorts.
Its properties in Asia include Gran Meliá Jakarta, Meliá Bali Villas & Spa Resort, 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. |
