Sol Meliá Posts Superb First-Quarter Results

Sol Meliá SA said net profit rose to 14.6 million euros in the first quarter to March 31 from 6.9 million euros a year earlier, driven by a positive performance from its overseas hotels.

In a statement, Sol Meliá said sales rose 10 percent to 262 million euros in the first quarter from 238 million euros a year earlier, as EBITDA climbed 16 percent to 71 million euros from 61 million euros.

Sol Meliá sees a ´clear recovery´ in April and May, and a ´promising outlook´ for summer thanks to increasing demand in its main markets, it said.

The company also noted expectations for strong sales in the Caribbean on the back of a strong euro and a recovery from American tourism.

Sol Meliá´s urban hotels in Spain fell 4.8 pct in the first quarter, reflecting increased capacity and the negative effect of Easter falling in March this year compared to April last year.

The first quarter of 2005 also had one day less than a year earlier, it noted. Spain´s vacation hotels rose 9.2 percent in the first quarter of this year.