MADRID— The decline in tourism following the events of September 11 was one contributory factor to the disappointing full year 2001 results for Sol Melia. The figures fell short of those expected both by the company and by certain analysts. EBITDA, for example, was expected to be euro 260 million (US$226.3 million) but instead came in at euro 241 million (US$209.8 million), a decline of 7% on the previous year. Travel-related industrial action and the euro 29.6 million (US$25.7 million) received from the companys sale of four hotels in 2000 were also blamed for the 45% fall in net profit to euro 64.7 million (US$56.3 million). Revenue, however, rose 14% to euro 1.02 billion (US$887.9 million), with overall RevPAR up 1% and average occupancy coming in at 69%. Sol Melia has noted signs of a gradual recovery in tourism, which it considers will translate into a satisfactory improvement in the results for 2002, with EBITDA expected to rise 10%. SOURCE: HVS International
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