SOL MELIÁ EXPANDS MOROCCAN PRESENCE

In a move to further consolidate its presence in Morocco, leading European hotel chain Sol Meliá has today announced the signing of management contracts for four new hotels and the securing of in excess of US$ 41 million (450 million Dirhams) investment for the construction of a fifth, the Paradisus Agadir. This brings the number of hotels in Sol Meliá's Moroccan portfolio to eight, with a total of 1,599 rooms.

The agreements establish Sol Melia's presence in new Morroccan destinations including Rabat, Safi and Khouribga, and increases its presence in Marrakech and Agadir. The four acquired properties, which will undergo an extensive refurbishment programme to bring it in line with the hotel's brand specifications, will be renamed Meliá Rabat, Sol Marrakech, Sol Safi and Sol Khouribga.

The first phase of development of the five star deluxe resort property, Paradisus Agadir, which is 40% owned by Sol Meliá, follows the signing of an earlier agreement between Sol Meliá and the Moroccan Government committing to the joint development of hotel projects in Morocco.

According to Chairman of Sol Meliá, Gabriel Escarrer, the signature of these agreements confirms Sol Meliá's commitment to the Moroccan Government to support the development of the tourism industry in the country. He said, "As well as contributing to developing the tourism infrastructure, we also aim to assist in improving training in the industry. This new hotel in Agadir will become the first Paradisus in the Mediterranean region and our aim is that this luxury 'all inclusive' product will gradually be introduced in other countries in the region". The Mediterranean region.

European capital cities and the Latin America & Caribbean region are the three key focus points for the Group's expansion. The Group currently has a portfolio of 240 hotels in nine countries in the Mediterranean and have already signed contracts to bring in more than 30 new hotels in the region.

With a population of 29 million, Morocco is the nearest African country to Europe and one of the tourism destinations with greatest potential for development. According to the World Tourism Organisation, in the year 2000 almost four million tourists visited Morocco, attracted to the combination of a unique culture and the contrasts offered by the country's varied terrain comprising a rich contrast of desert, mountains and magnificent beaches on both the Mediterranean and the Atlantic.

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.