BUSINESS TRENDS This is also reflected in F&B increases, particularly in the America Division. Last year Sol Meliá incorporated 18 meeting rooms with capacity for 3,4<strong>00</strong> people in its hotels in the Caribbean. The increase in total revenues in the European Resort and City Divisions, without Tryp, would have been 3% and 25%, respectively. Table 3 Hotel revenue split <strong>00</strong>/99 for owned/leased hotels. Dic-<strong>00</strong>/99 EUROPEAN RESORT EUROPEAN CITY AMERICA TOTAL (Millions of pesetas) <strong>00</strong> %o/99 99 <strong>00</strong> %o/99 99 <strong>00</strong> %o/99 99 <strong>00</strong> %o/99 99 ROOMS 28,542 16% 24,694 33,140 63% 20,345 15,065 53% 9,867 76,747 40% 54,907 F&B 18,105 15% 15,808 12,446 61% 7,754 13,176 41% 9,370 43,727 33% 32,932 OTHER REVENUES 2,443 4% 2,356 3,516 54% 2,282 3,305 40% 2,368 9,264 32% 7,<strong>00</strong>6 TOTALREVENUES 49,091 15% 42,859 49,102 62% 30,382 31,545 46% 21,604 129,739 37% 94,845 2.2. Management Business As it appears in the table below, management fees have increased by 17.6%. The Gross Operating Profit G.O.P. of these hotels has increased by 45.53% The fees of the European Resort Division have increased by 22.8%, in good part due to the better performance of the Croatian resorts during the year. The positive performance of the European City hotels explains the 13% increase of management fees. The evolution of the managed hotels in this division has been satisfactory as reflected by the 22% G.O.P. increase. The 22.7% increase in the America Division reflects an improvement in the performance of its hotels. The improvement cannot be attributed to any specific area, being applicable to all the countries in which the Company operates. Management fees in the Cuban Division have increased by almost 10%, in spite of the -6,8% decrease in Incentive Fees. The nominal percentage of Incentive Fees is charged according to the level of G.O.P. reached. In 2<strong>00</strong>0 the Cuban Division has not reached the G.O.P. margins achieved in 1999. Table 5 Management fees of hotels managed for third parties. Fee revenue (Millions of pesetas) Dec-<strong>00</strong> Incr. <strong>00</strong>/99 Dec-99 EUROPEAN RESORT Basic 1,032 18.8% 869 Incentive 741 28.9% 575 1,773 22.8% 1,443 EUROPEAN CITY Basic 998 14.9% 869 Incentive 324 7.5% 302 1,322 13.0% 1,171 AMERICA Basic 670 17.6% 570 Incentive 709 28.0% 554 1,380 22.7% 1,124 Fee revenue (Millions of pesetas) Dec-<strong>00</strong> Incr. <strong>00</strong>/99 Dec-99 ASIA-PACIFIC Basic 313 20.8% 259 Incentive 311 29.9% 239 624 25.2% 498 CUBA Basic 1,245 16.2% 1,072 Incentive 396 -6.8% 425 1,642 9.7% 1,497 TOTAL BASIC 4,259 17.1% 3,639 TOTAL INCENTIVE 2,481 18.4% 2,095 TOTAL 6,740 17.6% 5,734 S OL M ELIÁ A NNUAL R EPORT 2<strong>00</strong>0 155
3 Post-balance Sheet Events. On February 9, 2<strong>00</strong>1 bonds were issued for Euros 340 million at a fixed interest rate of 6.25% with five-year maturities in order to finance the acquisition of Tryp and to refinance part of the existing debt. This issue is part of the EMTN’s program (European Medium-Term Notes) of Euros 1,5<strong>00</strong> million carried out in 2<strong>00</strong>0. On February 5, 2<strong>00</strong>1, Sol Meliá sold part of its participation in Prodigios Interactivos S.A. to Banco Santander Central Hispano for Euros 11.2 million. This sale gave rise to capital gains of Euros 7.5 million. S OL M ELIÁ A NNUAL R EPORT 2<strong>00</strong>0 156
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