SOL MELIA ANNUAL REPORT 00 COMP

MILESTONES 2000· HOTEL GROWTH
with a presence all over Spain, the absence of
any net debt so as not to compromise the future
growth of Sol Meliá, the possibility of generating
cost savings of around 1,100 million
pesetas - 7 million euros- through synergies in
operations, the barrier to entry created for
international hotel groups to get a significant
foothold in Spain and, above all, the impact on
financial results.
The deal in figures
With a very strong position in Spain with a
portfolio of 50 hotels, the Tryp chain also had
an international presence with 3 hotels in
Cuba, 1 in Andorra and 7 in Tunisia. Its solid
position in the city hotel market and, particularly,
its outstanding presence in Madrid make
the new company a reference point if the
Spanish city hotel market. 51% of Sol Meliá’s
hotel portfolio is now in city locations with
49% of hotels in resorts.
The purchase of Tryp Hotels means the addition
of 60 hotels and more than 9,700 rooms,
figures which take us to more than 330 hotels
in 30 countries on 4 continents. The company
portfolio also includes 81 signed new projects
(15 from Tryp) which will take the total number
of Sol Meliá hotels in 2003 to at least 410
with more than 102,000 rooms.
RANKINGS OF SPANISH COMPANIES*
COMPANY HOTELS ROOMS
SOL MELIA 203 42,281
RIU HOTELS 59 14,377
NH HOTELS 86 10,101
FIESTA HOTELS 34 8,369
IBEROSTAR 25 8,173
BARCELO HOTELS 28 7,743
H10 HOTELS 21 6,647
HOTELES GLOBALES 31 6,376
PRINCESS HOTELS 15 5,910
GRUPOTEL 38 5,470
Source: Hostelmarket.
(*) Including signed projects for Sol Meliá.
TOTAL COST
60,891 Million pesetas
PAYMENT STRUCTURE 27,000 Million pesetas in cash payment +
13,222,266 Sol Meliá shares (at 15€)
% OF SOL MELIÁ CAPITAL IN OWNED
BY TRYP SHAREHOLDERS
(Antonio Briones, Rufino Calero y Max Mazin) 7.2%
MEMBERS OF TRYP IN
SOL MELIÁ BOARD 1
Nº OF HOTELS INCORPORATED 60 + 15 signed projects
COMPLEMENTARY ADQUISITION Hotels Tryp Fenix (Madrid)
(Included in total nº of hotels)
and Tryp Colón (Sevilla)
PRICE OF COMPLEMENTARY
ADQUISITION
12,500 Million pesetas
RANKING INTERNATIONAL LEVEL*
RANKING COMPANY HOTELS ROOMS
1 CENDANT CORP. 6,315 542,630
2 BASS HOTELS & RESORTS 2,886 471,680
3 MARRIOTT INTERNATIONAL 1,888 355,900
4 ACCOR 3,234 354,652
5 CHOICE HOTELS INTERNATIONAL 4,248 338,254
6 BEST WESTERN INTERNATIONAL 4,037 313,247
7 HILTON HOTELS CORP, 1,700 290,000
8 STARWOOD HOTELS & RESORSTS 716 217,651
9 CARLSON HOSPITALITY 616 114,161
10 SOL MELIÁ + TRYP 420 103,274
11 HYATT 195 85,743
12 SOCIÉTÉ DU LOUVRE 990 65,970
13 HILTON INTERNATIONAL 217 61,889
14 FORTE HOTEL GROUP 449 58,636
15 FELCOR LODGING TRUST 188 50,000
Source: Hotels Magazine, july 2000.
(*) Including signed projects for Sol Meliá & Tryp.
EBITDA MULTIPLE ANALYSIS
Acquisition of lease / management company 2000 2001(*)
Purchase of tryp before synergies (1) 9.36x 6.87x
Purchase of tryp after synergies (2) - 5.89x
Purchase of Tryp after synergies and fiscal
deduction of Goodwill (3) 5.25x 3.30x
(1) At Friday 1st December closing price of € 9.11
(2) Sol Meliá estimates 6,87 million euro synergies.
(3) Goodwill’s fiscal deduction 124,2 million euro
S OL
M ELIÁ
A NNUAL R EPORT 2000
29