The recovery in the second quarter of the year is confirmed, despite the bad results in the month of April for the industry.
Sol Melia reaches revenues of 457 million euros at the closing of the first half of the year 2003….
The recovery in the second quarter of the year is confirmed, despite the bad results in the month of April for the industry.
Sol Melia reaches revenues of 457 million euros at the closing of the first half of the year 2003.
The EDITBA reached 90,7 million euros
Sol Melia has published on 6th August 2003, the results of the hotel chain at the closing of the first half of the year 2003, reflecting a strong recovery of the market, mainly in the months of May and June.
The recovery of the resort market has been especially significant in Spain and the Caribbean countries, after the end of the Iraq conflict.
The Groups net profits were 10.3 million euros, 27,8% more that in the first half year of last year. During the first six months of 2003, the revenues were 457 million Euros, 4.3% less that in 2002, recovering a fall of 8% in the first quarter.
On the other hand, the average RevPar (revenues per available room) of all the affiliated hotels of the Group has diminished 2.1% with respect to the first half of the year in 2002, contrary to the fall of -4.6% in the first quarter.
Earnings before interest, taxes, depreciation, amortization and rentals (EDITBAR) achieved by Sol Melia during the mentioned period were 120.1 million Euros, 11.5% less than in the same period of 2002, while the Earnings before interest, taxes, depreciation and amortization (EDITBA) went up to 90.7 million Euros, a decrease of 13.5% with respect to 2002, taking into account the strong recovery in the first quarter the EDITBA had decreased 26.1%.
The company`s European Resort Division has made a strong recovery in the second quarter, with an increase in the RevPar of 10.9%, comparing it with the -2.7% in the first quarter. During April the Company reported the worst results since going into the stock market, but a great improvement, after the end of the Iraq conflict, during the months of May and June was achieved and caused a good closing for the end of the quarter.
The increase of tourists in Spain has not only created a rise in the number of guests to our establishments, but also a slight recovery to the average spending per stay.
In the European City Division, the cancellation of congresses and conventions previous to the Iraq conflict produced a delay until May, although a widespread recovery of the demand is still not appreciated this has also been affected by the increase in the offer in the main Spanish cities.
Finally, the Americas Division is still holding a strong recovery being one of the safe destinations (especially the Spanish-speaking Caribbean) and thanks to the great offer price-quality, and to the depreciation of US dollar in relation with euro wich makes the destination very competitive.
Increase of 261% in the sales through solmelia.com:
The technological capacity, the diversity of programmes offered, the best price guarantee and the reservation system services through our web have made solmelia.com the best hotel web page in the Spanish market. The increase in sales on-line has been very high.
In 2003 the first half year has closed with revenues of 14.9 million Euros, against 3.9 million Euros for the same period in 2002, which means an increase of 261%. These figures confirm the leadership of Sol Melia in a market where only 18% of the Spanish hotels use their web as a commercial tool. The reservations on-line through solmelia.com assume 15,20% of the companys centralized sales.
Sol Melia incorporates 9 new hotels during the first half of the year 2003:
During the first half of the year 2003 Sol Melia has incorporated 9 new hotels (1,835 rooms) to its file, making a total of 338 establishments and 80,842 rooms distributed in 30 countries on 4 continents.
These new hotels confirm the interest Sol Melia has to maintain its leadership in the Spanish hotel sector. Moreover, on the 30th June 2003, the Company had agreements signed for the addition of another 21 establishments (4,631 rooms), these respective openings will take place during the next two years.
Joint Venture between Sol Melia and Rank Group:
On the other hand, it is necessary to point out the joint venture between Sol Melia and Rank Group to develop in the exclusive hotels of the prestigious brand Hard Rock. This initiative has the financial backing of the Becker Ventures LLC, one of the most important private investors in the United States, with a capital of up to 1,000 million dollars assured to finance future projects.
The first hotel negotiated by the joint venture, which will also enable the introduction of Sol Melia in the United States, is located in Chicago and will open at the end of 2003.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
