meliá hotels international presentation 2011

Meliá Hotels Internationalpresentation

ME Barcelona(Spain)

Meliá Düsseldorf(Germany)

ME London(United Kingdom)

Gran Meliá Shanghai(China)

2

INVESTMENT CASE

Business Evolution 3

Valuable Hotel 7Portfolio

Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19

Meliá Hotels Internationalpresentation Agenda

Paradisus Punta Cana(Dominican Republic)

ME Cancún(Mexico)

Meliá Bali(Nusa Dua, Indonesia)

Meliá De mar(Majorca, Spain)

Meliá Hotels International set to takeadvantage of business evolution…

Strong positioning in main Core Markets:

- Leading Resort group worldwide with presence in LatAm, EMEA & Asia.

- Leading hotel company in LatAm & Caribbean.

- Significant presence in main European cities: Paris, Berlin, Barcelona, London,Rome, Madrid, Milan, Düsseldorf and Frankfurt.

Revenue Management & CRM1 Strategy

- 2.5mn members of mas loyalty program.

- melia.com as fastest increasing distribution channel.

The Cost Efficiency Programme duringthe crisis improved operational margins

- ~45% of a total 80 mn savings in 2009 considered to be permanent.

Little new capacity coming on stream2

- Low supply growth in terms of numberof rooms in core markets.

3

Meliá HotelsInternationalpresentation

INVESTMENT CASE



Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19

2010RevPAR +8.9%2011eHigh singledigit growth

Hotel EBITDA Marginimprovimentof +149 bps in 2010(+214 onlike-for-like basis)

CAGR 2011-14eDominican Republic +0.6%Mexico +1.0%Rest of Europe +1.2%Spain +0.3%

(1) Customer Relationship Management.(2) Source: STR, September 2011.

201051% of RevPARdue to prices2011eImportant contribu-tion of prices inRevPAR evolution

Meliá Düsseldorf (201) · Opened in October 2009

… coming from an environment whereMelia’s RevPAR and Ebitda hascomparatively outstand…

4


INVESTMENT CASE



Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19

Meliá Valencia Palacio de Congresos

20.000

15.000

10.000

5.000

0

-15%

1%

7%

RevenuesEvolution(in million$)

6%

15%

5%

-5%

-15%

-25%

RevPAREvolution(% Change)

2.000

1.500

1.000

500

0

-500

EBITDAEvolution(in million$)

7%

-1%

-13%

6%

-17%

5.60%7%

4%

-17%

5%10%

-1%

-25%

11%

0%

-18%

8%6%

2%

-3%

-17%

9%

2007 2008 2009 2010Source: Company websites; Company Annual Reports; Deloitte researchNote: RevPar data for 2008 and 2009 not available for Choice Hotels International

17,8

00

19,1

00

16,8

00

18,7

00

11,6

19

11,0

32

7.84

3

8,49

7

615.

1

641.

7

564.

2

596.

1

12.9

90

12,8

79

10,9

08

11.6

91

6,15

3

5,75

4

4,69

6

5,07

1

3,73

8

3,83

5

3,33

0

3,52

7

1,92

7

1,82

4

1,64

2

1,79

8

585

645

472 55

2

1,39

0

1,98

2

949 1,

253

198.

1

200.

5

164.

5

166.

6

1,18

3

1,10

2

-67

943 1,

164

923

335

885

480 58

2

274 43

6 487

365

289

336

…, and enabled us to deliver RevPARgrowth in 6 consecutive quarters,…


INVESTMENT CASE



Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19

Innside Dresden (180) · Opened in April 2010

5

3Q11

2Q11

1Q11

4Q10

3Q10

2Q10

5% 10% 15% RevPARgrowth

+10.0%

+7.2%

+11.5%

+13.0%

+10.1%

+11.9%

Quarter

… and leading to good set ofunderlying 9M’11 results…

6


9M Profit & Loss Account

Tryp Berlin Mitte (225) · Opened in December 2010

(million Euros) Sep 11 Sep10 %

REVENUES 969.5 976.7 -0.7%

EBITDAR 245.1 281.1 -12.8%

EBITDA 176.6 216.1 -18.3%

EBIT 106.7 143.8 -25.8%

EBT 47.0 86.4 -45.6%

Net Profit at. 38.3 71.7 -46.6%

INVESTMENT CASE



Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19RevPAR’9M11: +9.1% (Q3: 10.0%)

Cost per stay decreasesby 0.2%

Underlying Hotel Ebitda margin:126 bps

Worldwide Resorts likelyto lead RevPAR growthalong with Gateway Cities

...when excluding capital gains...

5.6%

13.9%

Note: Capital gains,9M11: €33.6 mn; 9M10: €93.2 mn

OUTLOOK

…thanks to a valuable hotelportfolio in prime locations recentlyrefurbished / incorporated.

New independent valuation of Real Estate assetsby 2011 Year-End

Development of 5 mn square meters in Salvadorde Bahia (Brazil) combining hotels, mixedownership products and residential

7


INVESTMENT CASE



Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19

Melia Atlanta (502) · Opened in October 2010

Gran Melia Colon, Seville (189) · Refurbished in 2009

Melia Barcelona (333) · Refurbished in 2008

Melia Madrid Princesa · Refurbished in 20095 Mn square meters in Salvador de Bahia (Brazil)

Consistent internationalization plan, via low capital intensive formulas, reinforcingUpscale y Premium brands emphasizing those countries where the Group hasexperience and consolidated know-how:

Pipeline: 32 hotels (8,918 rooms) to be incorporated in the 2011-2014 period:

• 86% to be incorporated internationally:

• Focus on Asia & Arab Gulf States

• Key European Markets (Germany, Italy, UK, France and other major cities in Europe)

• LatAm and Caribbean

• Mediterranean Rim

• Via low capital-intensive formulas: 76% management & franchise, 12% variable lease and 12% property.

• Reinforcing brands in the Upscale & Premium segments: 85% of the new rooms.

8


INVESTMENT CASE



Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19

Meliá Dubai · Opening in 2011

Asset Light(er) Model & Brand Equityunderpins expansion...

20 year strategic alliance signed with Wyndham Hotel Group, fostering growth ofthe Tryp by Wyndham brand & Agreement with Jin Jiang (China) to cooperate inmarketing, sales, operations and development:

…via Joint Ventures in gatewaycities in US, Europe & Asia…

9


INVESTMENT CASE



Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19

Meliá Tortuga (Cape Verde) (234) · Opened in May 2011

Wyndham Hotel Group: Largest franchisegroup worldwide with nearly 7,100franchised hotels and more than 590,000rooms.

• Sale of the Tryp brand to Wyndham Hotel Groupfor $42.5 Mn (€34.7 Mn) and agreement withWyndham to keep using the Tryp brand over aperiod of 20 years.

• Strategic alliance between both Companies todevelop the Tryp by Wyndham brand in keyinternational cities, especially across Europe &LatAm.

• Cooperative operation of the hotels using bothcentral reservations systems and loyalty programs.

- “Wyndham Rewards” programme involves more than8 million active members while Meliá Hotels Internationalloyalty programme, mas, nearly 2.5 million members.

JIN JIANG: Leading hotel group in China withmore than 450 hotels and 74,000 rooms.

• Long-term partnership encompassing hoteldevelopment, marketing & sales, reservationssystems and loyalty programmes.

• Allowing both chains to grow in the market inwhich the other enjoys competitive advantagesthrough a joint growth strategy in China andEurope.

• Adaptation of hotel services to the needs ofChinese and European guests, one of the majorchallenges for both companies.

2 All-Inclusive Paradisus Resorts in Playa del Carmen (Mexico).906 hotel rooms including 340 Club Meliá units.Opening in November 15 2011.

…and mixed ownership formulas in LatAm& Caribbean, i.e. 290K sq mts in Playa del Carmen(Mexico)…

10


INVESTMENT CASE



Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19

Playa del Carmen (Mexico) · Opening in 2011

Family Concierge Suite

Royal Service Junior Suite

Royal Service Junior Suite’s Deluxe Bathroom

An exclusive adult only resortfeaturing Royal Service:

- 394 suites, including swim-up suites- 5 restaurants and 4 bars- Large swimming pool- Access to golf courses

An exclusive family oriented resortfeaturing Family Concierge:

- 512 suites, including swim-up suites- 4 restaurants and 3 bars- Open area Kids’ Club- Large swimming pool- Access to golf courses

- Convention Center- Exclusive shopping

area- YHI SPA- Gaby Club with

chill out area

P L AYA D E L C A R M E N

PA R A D I S U S L A P E R L A PA R A D I S U S L A E S M E R A L D ASHARED AREAS

P L AYA D E L C A R M E N

A D U LT S F A M I L I E S

Acquisition of free-holdfor €133 Mn.

157 rooms & ConventionCentre. Total built area of17,000 sqm.

Strategic asset in a keydestination, positioning the “MEby Meliá” brand in one of themost important feeder markets.

Scheduled to open in Q2 2012.

Design-driven & experience-based hotel with a strategiclocation alongside CoventGarden & Trafalgar Square

“Brand-building asset”forfuture growth of ME by Meliábrand through Management,Franchise and JV.

…supported by opportunityfor flagship acquisitionsi.e. ME London.

11


INVESTMENT CASE



Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19

Strand 336, London WC2R 1HS

ME Madrid (192)

ME Cancún (419)

ME Cabo (155)

ME Barcelona (259)

ME Vienna (255) · Opening early 2013

ME London (157)Opening in 2012

Net debt' 2011 target of below 1 billion Euros.

Average interest rate expected in 2011: ~4.5%.

Accomplishment of Covenants 1H2011 & confidence in meeting them in2011.

- Net debt / Ebitda < 3.5x (3.49x in 1H2011) - Ebitda / Net Interest > 4.0x (4.99x in 1H2011)

Fixed-rate debt increased from 26% in 2008 to 66% in 9M2011.

2-year maturity extension of 3 syndicated loans through the signature of aForward Start Facility (FSF) in August 2010 for 252 mn* (see following slide).

All within a framework ofappropriate debt management...

12


INVESTMENT CASE



Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19

Tryp Condal Mar (178) · Opened in June 2010

(*) Includes €18 mn of “new money”

…which leads to a comfortableLiquidity Position.

13


INVESTMENT CASE



Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19

In the current financing environment, Meliá Hotels Internationalwill focus on maintaining high liquidity levels vs maturities

Currrent liquidity levels up to September at €348.0 mn comparesto debt maturities for the remaining of 2011 and 2012: €284.6 mn

Note: Not included €283.1 Mn of used revolving credit facilities.(1) Figure includes Preference Share €106.9 Mn

Debt Maturity

299.5

401.3

25.1 25.8 26.2

0.0

50.0

100.0

150.0

200.0

250.0

4Q11 2012 2013 2014 2015 2016 2017

26.6

2018

300.0

350.0

400.0

450.0

21.4

2019

FSF: €234.0 Mn (138.4 + 95.6)255.8 (1)

28.718.9

2020

Meliá Sharm (468) · Opened in July 2010

Cash and short-term deposits 307.1

Available credit facilities 40.9

Total 348.0

Liquidity Situation €Mn

13.1

2021

Meliá Hotels Internationalpresentation Appendix

Sol Gavilanes (Menorca, Spain)

Meliá Hotels International is ahotel company with a global reach…

15


INVESTMENT CASE



Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19

Spain157 hotels

(45%)

Rest of Europe 72 hotels

(22%)

MEA5 hotels

(2%)Asia

7 hotels(3%)

LatAm67 hotels

(28%)

Market cap: 950 Million Euros (3)

1,309 Million US dollars

Main Shareholders:Escarrer Family (64.64%),CAM Savings Bank (6.007%);Free-float: 29.353%

Member of theFTSE4Good Ibex index

Note: % of rooms (2)

(1) Source: Hotels Magazine 2010 with figures as of December' 09;(2) Up to September 2011; (3) MEL.MC: €5.14 at November 3, 2011 / 184.8 mn shares

Largest hotel group inSpain and 17th companyworldwide (1) with308 hotels and 77,808rooms(2) in 28 countries

Ranking Company Rooms Hotels

1 Intercontinental 646,679 4,4382 Accor 499,456 4,1203 Groupe du Louvre 91,409 1,0974 TUI AG 83,728 2975 The Rezidor Hotel Group 83,200 3896 Meliá Hotels International (1) 76,887 305

At a glance:

6th largest Hotel Group in Europe (1)

Meliá La Quinta (172) · Opened in March 2010

Organic growth through reinvestment of profits

- 50’s: First resort in Mallorca-Spain- 60’s: Development in Balearic Islands- 70’s: Expansion into other major Spanish resorts- 80’s: Growth to Spanish cities- 90’s: Development in LatAm- 00’s: Presence in European gateway cities

Acquisition of hotel chains

- 1984: Hotasa 32 hotels- 1986: CHM 11 hotels- 1987: Meliá hotels 22 hotels- 1999: 8 hotels in Paris- 2000: Tryp 60 hotels- 2007: Innside 11 hotels in Germany

History of product renewal and innovation

- 785 mn in refurb from 2001 to 2010.- Modern IT Systems integrated for more professional management- Introduction of state-of-the-art Food & Beverage technology in company resorts- Creation of Hospitality Business Solutions (HBS): Shared Service Centre, provider of back office services to the different Sol Melia Businesses

Successfully executed Strategic Plan 2004-07: Financial Strength & Consolidation

Successfully executed 2009-2010 Contingency Plan

… built through a long history ofgrowth, consolidation & innovation

16


INVESTMENT CASE



Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19

Gran Meliá Shanghai (685) · Opened in December 2009

The Company has a balanced portfolio...

17


INVESTMENT CASE



Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19 36%

11%

Spain Rest of EMEA Asia LaTAM

45%

24%

28%

3%

Room Portfolio by location

Room Portfolio by Category

Owned Leased Managed Franchised

49%

6%

18%

27%

Room Portfolio by Ownership

Room Portfolio by Segment*

Upscalesegment

Luxurysegment

19%

34%

Midscale53%

41%CITY

59%RESORT

(*) 52% Resort / 48% city in owned & leasedNOTE: All figures by number of rooms (November 2011)

Meliá Bilbao (211) · Opened in September 2009

...with differentiatingelements based on diversification.

18


INVESTMENT CASE



Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19

BALANCEDRESORT / CITY EBITDA

SENSIBLE CUSTOMERSEGMENTATION1

24%GROUPS

32%INDIVIDUALS

LEISURE 56%

18%GROUPS

26%INDIVIDUALS

BUSINESS 44%

47%CITY

53%RESORT

Meliá Luxembourg (161) · Opened in May 2009

(1) Revenues

32%

17%3%2%

3%3%3%

11%9%

13%

CLIENTS BYREGION OF RESIDENCE

NOTE: figures 2010

2% 2%

SpainOtherUKUSAGermanyItaly

FranceMexicoRussiaCanadaVenezuelaNetherlands

Meliá Hotels International,much more than a leading Company

19


INVESTMENT CASE

Business Recovery 3


Sound Strategy 8

Financials 12

APPENDIX

Positioning 15

History 16

Diversification 17

Sustainability 19

We contribute to (sustainable) development of the communities in which we operate andof the people that live on them. Building our legacy.

Sustainability at Meliá Hotels InternationalOUR VISION

Createvalue for ourStakeholders

PublicPositioning

Director Plan

RELATIONCOMMUNICATION

PRESENCE

Create valuefor Meliá

HotelsInternational

SustainableDevelopment

Plan

EMPLOYEESCUSTOMERS

SHAREHOLDERSSUPPLIERS

SOCIALENVIRONMENT

VISI

ON

The Public Positioning Director Plan and the Sustainable Development Plan get measured andevaluated in a yearly basis through Meliá Hotels International public commitments.

Our commitment in figures (2010)216 activities to celebrate theInternational Year of Biodiversity29 hotels withenvironmental certification

Reduction of 4,3%in kg CO2 per stayReduction of 8,4% m3 ofwater consumed per stay

96,3% of purchases fromlocal suppliers10.925 people involved inSolidarity Day at Meliá HotelsInternational

FTSE4Good IBEX

BHC CERTIFICATION

GLOBAL COMPACT

GRI REPORT

20

This report is a communication made, or approved for communication by Meliá Hotels International. It is directed exclusively to eligiblecounterparties and professional clients. No persons other than an eligible counterparty or a professional client should read or rely onany information in this report.

This research report is being distributed by Meliá Hotels International, purely as a resource and for general information purposes andonly contains general information; therefore, this report does not take account of the specific circumstances, investment objectives,financial position or risk profile of any recipient and should not be relied upon as authoritative or taken in substitution for the exerciseof judgement by recipient.

Each recipient should consider the appropriateness of any investment decision having regard to their own circumstances, the full rangeof information available and appropriate professional advice. Each recipient should make their own investment decision regardless ofthe circumstances mentioned in this report and by obtaining specific specialist advice that may be necessary.

The information and opinions, estimates, projections and recommendations in this report have been drafted by SOL MELIA and are basedon publicly – available information and on sources believed to be reliable and in good faith, but that information has not been verifiedindependently and no representation or warranty, either express or implied, is made as to their accuracy, completeness or correctness.

Meliá Hotels International may amend, supplement or updated the contents of this report in such form and in such timescales as MeliáHotels International deems appropriate. Meliá Hotels International reserves the right to express different or contrary recommendationsand opinions.

This report does not constitute or from part of, and should not be construed as, any other for sale or subscription of, or any invitationto offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with,any contract or commitment whatsoever. Meliá Hotels International accepts no liability whatsoever for any loss or damage arising fromany use of this report or its contents. Investors should bear in mind that past performance or results are no guarantee of future performanceor results. Price of securities or instruments or the results of investments may fluctuate against the investor’s interest and may even leadto the loss of the initial investment.

This report is for the use of the addressees only, is supplied to you solely in your capacity as an investment professional or knowledgeableand experienced investor for your information and no part of this document may be (I) copied, reproduced or duplicated by any formor means, (II redistributed or (III) quoted or published, for any purpose, without the prior, written consent of Meliá Hotels International.Breach of these restrictions may constitute breach of law in the relevant jurisdictions.

Meliá Hotels International may distribute reports such as this in hard copy or electronically.

meliá hotels international presentation 2011

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