Earnings before interest, taxes, depreciation and amortisation (EBITDA) for Sol in the first half of 2000 reached 19,300 million pesetas � 116 million euros -, a 41% increase over 1999. 

The results have been due in part to the excellent performance of hotels in the European City Division both within Spain and in destinations such as London, Paris and Brussels, where the hotels acquired by the company last year are beginning to generate considerable revenues due to the superior average room rates they are able to command. 

The impressive results are also due to a good performance in the European Resort Division especially in Spain, but with the exception of the Canary Islands, an area in which the company operates a large number of its resort hotels. Mention must also be made of the contribution of a clear recovery in the hotels operated by the company�s Americas Division.

14 new hotels added in the first half of the year 

For the year to June 30th., 2000, Sol Meliá has added 14 new hotels to its portfolio. The company currently provides 272 hotels in 28 countries on 4 continents with a total of 71,240 rooms. 

Shareholder dividends distributed by Sol Meliá increase by 50% 

The Sol Meliá Ordinary General Shareholders� Meeting held in May in the Meliá Confort Palas Atenea Hotel in Palma de Majorca, approved the distribution of 23% of available net profits as dividends to shareholders. The pay-out was equivalent to 20.57 pesetas � 0.12 euros- per share, an increase of 50% over the previous year. The company thus achieved its stated commitment to make an annual dividend pay-out to shareholders of between 20 and 25% of net profits.

Sol Meliá begins to implement its �e-transformation�

After the announcement of the creation of a new E-business Division, responsible for leading the ambitious project of the "E-transformation" of Sol Meliá, the hotel company has made a number of subsequent announcements regarding important initiatives in its B2C (Business to Consumer) and B2B strategy (Business to Business).

During the first half of the year Sol Meliá, working together with Telefónica, BBVA and other tourism companies, took a 24.5% share in the creation of a B2B portal for hotel companies and their suppliers. 

The company also has a 10.60% share in the recently-created generalist portal "Prodigios", a large part of the content of which will be based around entertainment, leisure, tourism and education. Other partners in the venture include the publisher Grupo Planeta and the bank Banco Santander Central Hispano. Sol Meliá has guaranteed its position within the new portal as the exclusive supplier of leisure and travel products, to be channelled through a virtual travel agency which will begin to operate this summer. The new generalist portal has been created with a capital investment of 52,120 million pesetas �313,24 million euros-.

At the same time Sol Meliá has completely renovated the design of its website (http://www.solmelia.com), and has also begun the process of adapting all of the company�s internal management systems to the Internet environment. The objective of all of these projects is to take full advantage of the benefits offered by new technologies to increase company revenues, reduce costs and, most important of all, improve the quality of the products and services the company provides to its five clients: guests, hotel owners, shareholders, partners and employees.