STRONG SHOWING FOR SOL MELIÁ 2001 MID-YEAR RESULTS

Sol Meliá Hotels & Resorts today announced financial results for the first half of 2001. Consolidated revenues have increased by 29% from the same period 2000 and a 9% growth in RevPar (revenue per available room) for all company hotels. Key developments for the Group within the period include the successful integration of the Tryp hotel chain, the addition of 16 new hotels in the first six months of 2001 and the announcement of a BBB+ rating for Sol Meliá by the credit rating agency FITCH.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to 136 million euros, an 18% increase over the same period in 2000. Earnings before interest, taxes, depreciation, amortisation and rentals (EBITDAR) achieved by Sol Meliá during the first half of the year reached 160 million euros, a 33% increase over the previous year. Consolidated revenues rose to 494 million euros, an increase of 29% over the same period in 2000.

Net profits for the first half of the year were 53 million euros, an 11 % decline over 2000. The decrease was due to the effect of the extraordinary profits obtained in the year 2000 with the sale of hotels in the Dominican Republic and the Canary Islands.

The positive results announced by the hotel company confirm the generation of the synergies expected after the purchase of Tryp Hotels. Cost savings of at least 7 million euros are expected by the close of year 2001.

During the first half of the year, Sol Meliá has added 16 new hotels to its portfolio, which now stands at 347 hotels with 83,805 rooms in 30 countries on 4 continents. On 30th June 2001, the company also had signed agreements to add another 74 hotels scheduled to open over the next two years.

Amongst the most relevant events of the first half of the year was the announcement of a BBB+ rating for Sol Meliá by the credit rating agency FITCH making it the only Spanish hotel company with such a rating.

The decision was the result of an analysis of the company's financial ratios in the light of recent investments made by Sol Meliá, as well as the future prospects of the company. The FITCH agency has also given a positive view on the implementation of a number of measures by the Group to improve its balance sheet, measures which have lowered the company's debt ratio to only 71.4%. The rating provides further support for the capacity of Sol Meliá to obtain greater resources on capital markets, something that the company is currently seeking in order to diversify its sources of finance.

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.