SOL MELIA ANNUAL REPORT 00 COMP

4 Foreseeable Outlook
The outlook for the Group is directly linked to the business prospects in the main operation areas of Sol Meliá and to the
results of its five functional divisions.
In the European Resort Division, dependent on the main tourist destinations in Spain and the Mediterranean area, prospects
are positive due to the ongoing refurbishment plan and to the incorporation of new hotels in the area.
The European City Division has experienced a diversification process over the last few years, with an opening from Spain
towards other countries such as United Kingdom, France, Italy, Belgium and Germany. The prospects in these markets are
good, especially for Spain where the Company has increased its capacity after the acquisition of Tryp hotels, a well-positioned
company in the Spanish city segment. The incorporation of Tryp Hotels will be especially profitable in Madrid, the
most important European centre for Congress and Convention holding.
The foreseeable price increases in this segment in Spain and the good location of both existing and acquired hotels, as well
as the addition of various new hotels to be incorporated in next 18 months in Spain, Italy and Portugal allow us to predict
positive prospects for this division in 2001.
Given the economic recovery of Latin America since 1999, prospects for both city and resort hotels in the area are good.
For Sol Meliá, specifically, the full development of the hotels acquired over the last 18 months in Mexico, Dominican
Republic, Peru, Panama, Venezuela, Brazil and Argentina will benefit the performance of this division. During the next
two years a great many hotels in Puerto Rico, Brazil, Mexico and Peru will be incorporated to the Group.
Cuba will continue to be one of the main tourist destinations in the Caribbean during both the current and forthcoming
years. Sol Meliá, with 25 hotels and 11,000 rooms, holds 37% of the market share on the island with a dominant presence
in the most important resort and city destinations.
As for the Asia Division, tourism prospects are favourable in the region for 2001, specially in Indonesia where a 30% increase
of revenues is expected. 70 per cent of Sol Meliá’s hotels in the region are located in Indonesia.
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