Sol Melia obtains 50 million Euros of net profit in 2005

Sol Melia has presented the financial results of second quarter of the year with an 85% increase in net profit, 9.1% increase in a total sales value of 581 million Euros and has reduced its net liabilities by 43.2 million euros.

For the first time in five years, all the business areas (European Cities, European Resorts, America and Sol Meliá Vacation Club) are showing improvement as seen by the RevPAR increase of 6.3%.

The continual recuperation of RevPAR in the Spanish cities during the past quarters provides the key to the development achieved in the European City Division, where RevPAR has increased by 8,9% up to the month of June. Outside Spain, the most significant results are coming from Milan, London and Paris, with increases of 12,5%, 5,7% and 5% respectively, thanks to the consolidation of corporate business travel.

The European Resort Division has been positively affected by the Easter holidays during the second quarter of this year and RevPAR has increased by +10,2%, mainly thanks to the hotels on the Costa del Sol and in the Balearic Islands, which are the most popular destinations for this period.

In July, Sol Meliá sold the Rey Don Jaime Hotel in Valencia for 38,5 million Euros, 18 times the EBITDA for 2005, thereby it will generate a net profit of 15,3 million Euros in the third quarter, and has acquired 33% of the ownership of the Tryp Bellver Hotel in Majorca for 3.2 million Euros at a 4.1 multiple of EBITDA. As a result of this operation, the company now owns 100% of this establishment. The recent creation of the position of Director of Real Estate Development has been designed to reinforce this type of operation, with an aim to purchasing land and buildings, which will strengthen the companyâ