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41% for the 1st Qtr |
| The Spanish hotel company Sol Meliá ended
the first quarter of 2000 with results that were ahead of objectives for
the period, obtaining earnings before interest, taxes, depreciation and
amortisation (EBITDA) of 9,772 million pesetas � 59 million euros -, an
increase of 41.2% over the same period in 1999. Consolidated revenues grew
to 29,444 million pesetas - 177 million euros -, a 27% increase with respect
to 1999. Consolidated net profits for Sol Meliá for the first quarter
of 2000 reached 4,300 million pesetas �26 million euros-, a 41.16% increase
over 1999.
The results are due in part to the excellent performance of the European City Division hotels, both in Spain and in London and Paris, where the hotels purchased by the company last year have generated significant additional revenues due to their superior Average Room Rates. Improved performance is also due to the recovery of results in hotels in the company�s Americas Division. With regards to the company�s hotel management business, improvements have been seen in the results of the Cuban Division, while there has also been a steady improvement in the performance of hotels in the Asia-Pacific Division. 8 new hotels added to the hotel portfolio in the first quarter 2000 For the year to March 31st. 2000, Sol Meliá has added 8 new hotels to a portfolio which currently consists of 268 hotels in 27 countries on 4 continents, with a total of 70,035 rooms. The company also holds signed contracts for a further 72 hotel additions over the next two years, as well as expecting new agreements to be reached over the coming months. Share value From the beginning of the year to 8th. May, Sol Meliá shares had risen in value by 16.8%, as they reached a value of 13.14 euros per share, placing the company at seventh in the growth ranking on the Ibex 35 market. During the year, shares have reached a maximum value of 13.94 euros. Sol Melia Aims for "E-Transformation" One of the most significant announcements of the first quarter was the appointment of Luís del Olmo Piñero, previously company Executive Vice President of Sales & Marketing, as the new Executive Vice President of the newly-created Sol Meliá E-Business Division. Mr. del Olmo will oversee the adaptation of all of the companies sales and procurement activities, as well as its internal management processes and procedures, to the Internet environment. Sol Meliá has made available an initial budget of 5,000 million pesetas -30.05 million euros- for the new Division�s activities. After a successful 1999, in which Sol Meliá completed its merger
with Inmotel Inversiones and Meliá Inversiones Americanas (MIA),
and also integrated 27 additional hotels to its portfolio, the hotel company
is now focusing a large part of its efforts on the development of three
distinct areas of E-Business.
Sol Meliá is also analysing participation in a number of e-ventures proposed by third parties. |
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Sushma Sivasriamphai Jennifer Dunbar DunbaroJones & Associates 51 Goldhill Plaza #07-04 Singapore 308900 Phone : (65) 356 2830 [email protected] |