SOL MELIA ANNOUNCES NEW GLOBAL BRAND STRUCTURE

Leading European hotel chain Sol Meliá today announced a new brand structure which sees a reduction in the number of brands in its portfolio, and the launch of a new TRYP hotel brand. The new structure comprises four major brands: Paradisus, Meliá, TRYP, and Sol, and the retention of the Gran Meliá sub-brand.

The move, which follows Sol Meliá's successful acquisition of the TRYP hotel chain in September 2000, aims to simplify the Group's existing structure to reinforce the standards associated with each brand, allowing the company to concentrate its marketing efforts in the promotion of its four key brand categories. An advertising campaign of approximately 2.4 million euros (400 million pesetas) will support the restructuring.

Sol Meliá is currently conducting a major analysis of the product and service standards of all of the hotels within the Group's portfolio as well as the projects already signed up or under development. The rebranding is expected to be complete by the end of the third quarter 2001, following which, the Group's portfolio will comprise 8 Paradisus branded hotels (5 star all-inclusive resort properties); 155 Meliá properties (superior 4 star and 5 star city and resort
hotels); 157 TRYP hotels (4 star and Superior 3 Star city hotels); and 100 Sol hotels (4 star and Superior 3 Star resort properties).

According to the Vice Chairman of Sol Meliá, Sebastián Escarrer, the move is in line with international hotel market trends to move towards a consolidation and concentration of hotel brands and for the association of sub-brands to different business segments (golf, meetings and incentives), instead of to the traditional star rating system.

He said, "Sol Meliá has decided to simplify and clarify its brand structure, eliminating those brands which might create confusion or lack brand awareness, and repositioning the others in the market niche to which it is best suited".