FIRST QUARTER RESULTS 2014

m eliah o te l s i n t e r n a t i on a l . co m

FIRST QUARTER 2014 (Million Euros)

mar-14

mar-13

REVENUES

315,9 282,4 12%

EBITDAR

74,4 63,7 17%

EBITDA

53,1 43,6 22%

EBIT

31,6 23,2 36%

TOTAL FINANCIAL PROFIT (LOSS)

19,9

14,9

33%

EARNINGS BEFORE TAXES

8,7

3,3

166%

RESULT FROM CONTINUING OPERATIONS

7,1

2,5

190%

RESULTS FROM DISCONTINUING OPERATIONS

0,0

1,7

-99%

NET PROFIT

7,2

4,2

71%

NET PROFIT ATTRIBUTABLE

8,2

4,1

99%

53,1

43,6

22%

EBITDA ex capital gains

Operational Ratios REVPAR EBITDA MARGIN

59,5 54,0 10,1% 16,8%

15,4%

136 bp

Underlying EBITDA improved by 22% thanks to a 10% increase in RevPAR, while Net Profit Attributable to parent Company doubled compared to the same period last year Business performance: Overall improvement of margins • Total Revenues improved by 12% due to the excellent performance of the hotel business, which showed a RevPAR increase of 10.1%, thanks mainly to Melia’s leadership in the resort segment, reflected in the positive results obtained in the Caribbean and the Canary Islands. • EBITDA without capital gains from asset rotation activity increased by 22%, leading to an increase in margins of 136 bps. • Among the main key drivers to achieve these positive results are the consistently positive evolution of melia.com (+20.4% up to March), with sales on-the-books 40% above the previous year; together with the Company decision to buy the 50% remaining stake in December 2013 of the hotel Gran Meliá Palacio de Isora, at a time when is achieving historical figures. • For the second consecutive year, Meliá has been included in the MERCO, a Corporate Social Responsibility Index, as the first Company in the tourism sector. Debt management • Net debt has increased vs Dec’13 by €84 million (+7.25%) reaching €1.242 million largely explained by: a) the incorporation of 29 million debt held by the Company Colon Verona S.A., owner of the Gran Meliá Colon (Seville), after its consolidation the 1st of January ’14 (in accordance with the IFRS 10); b) the devaluation of the Bolívar in Venezuela which had an impact of €20 million; and c) the evolution of Cash Flow from Operating Activities for which the first quarter used to be negative. • The Company maintains its commitment for ‘14 to deleverage the balance sheet, partially thanks to the asset rotation (by a minimum of €100125), the improvement of the business performance in hotels and Club Meliá and the possible conversion of the €200 Convertible Bond which matures in Dec ’14. Development strategy • In 2014 Meliá has intensified its role as a hotel manager, adding to its portfolio 5 hotels (1,600 rooms), of which 4 are under management: Meliá Paulista (Brazil), Meliá Jinan (China), Tryp Lisboa Aeropuerto and Tryp Madrid Airport Suites. Additionally the Company added the Meliá Vienna under a rental agreement, which is registering positive figures during its first months of operations. • Regarding the pipeline, YTD the Company has signed 5 additional hotels (1,600 rooms) to reach a total pipeline of 60 hotels (17,000 rooms), most of them to be opened in the next two years, strengthening Meliá’s globalisation plan with the signature of the Innside Makkassar and Legian (Indonesia), the ME Milano, the Innside New York and the Gran Meliá Ulanbaatar (Mongolia), all them under low capital intensive formulas. Outlook 2014 • The Easter holidays in April saw a positive response from Spanish domestic demand with increases near 15%, providing a good indicator of what the Company may expect for the summer season. The Company remains confident about a summer season above last year’s figures, benefiting from the consolidation of projects such as Calvià Beach, Katmandú Park & Resort (Majorca), the opening of the ME Mallorca and ME Ibiza, and the contribution of the Gran Meliá Palacio de Isora. It is also important to highlight the better news from Spanish cities which up to April registered an increase in RevPAR of 5% thank to the strategy implemented by the Company focused on the strengthening of the leisure component also in city hotels, taking advantage of Meliá leadership in the resorts industry. • Given the positive outlook, guidance points towards a RevPAR increase for the first half of the year around 7-8%, maintaining a mid-to-high single digit growth forecast for the full year, mainly explained by price increases.

3

INFORM ON OPERATIONS: EVOLUTION PER AREA

In overall terms, RevPAR for owned and leased hotels increased by a healthy +10.1% explained by a +6.4% increase in Average Room Rate (A.R.R) and a +3.5% increase in Occupancy Rates.

AMERICA America has registered an excellent first quarter, maintaining the double digit growth in RevPAR which improved by 17.3%. By countries, the best performance was in Mexico where RevPAR achieved a 25.3% increase compared with the same period in 2013, once again thanks to the contribution of the Paradisus La Perla and Paradisus La Esmeralda resorts in Playa del Carmen. At the operating level, their contribution was almost 20% above last year’s figures (at the EBITDA level), maintaining an excellent guidance for the whole year and pointing to a total contribution for 2014 of $27-28Mn, even taken into consideration the impact of the rise in VAT in the Mexican Caribbean area and the fact that price negotiations were already closed in promotions already launched and group contracts already signed. At this stage, the Company takes this opportunity to recall that the total investment in the project was around 150 million dollars, expecting to give rise to earnings of nearly 60 million dollars in the first 3 years of operations and becoming the second largest contributor in the Company in terms of EBITDA. Another highlight is the positive evolution of the Paradisus Cancun hotel one year after its rebranding reflecting a 12% increase in RevPAR, all explained by prices. The Dominican Republic achieved a 7.4% increase in RevPAR, with positive performances by the Paradisus Punta Cana and, particularly, The Reserve at Paradisus Punta Cana (RevPAR +23%), which after opening in March 2013 to enhance customer segmentation, has already achieved a strong position as an independent luxury boutique hotel – as is the case in The Reserve at Paradisus Palma Real. Also of note is the evolution of the Paradisus Palma Real and The Reserve at Paradisus Palma Real. In terms of Available Rooms (-7%), the evolution is explained due to the disaffiliation of the Meliá Mexico Reforma (Mexico) after the asset disposals of last December 2013. To conclude this section on the evolution of the hotels under management, also of note is the evolution of Meliá’s first hotel in the English-speaking Caribbean, the Meliá Nassau Beach, which is strengthening its positioning in the market month after month and registering very positive figures, above the expectations, mainly thanks to a good pace of growth in all segments, especially trough melia.com which implies the 40% of total revenues in the hotels.

ME EUROPE RevPAR in Premium Europe increased by 54.9% affected by the change in the reporting perimeter. Since June 2013 leased and owned hotels in this category only include the ME brand, while the rest of the hotels previously included in Premium Europe became part of the EMEA region. If we look at the evolution of the ME Europe area, there has been an increase of 48.8%, thanks to the contribution of the ME London (RevPAR +110%) which in its second year of operations in the first quarter of 2014 became the hotel with the second highest Average Room Rate and third highest RevPAR in the Company, proving its strong positioning in the market as a result of the Company efforts to make the hotel a benchmark for the hotel industry in London. On the other hand, the ME Madrid hotel also registered positive figures partially due to lobby and F&B renovation together with the launching of the boutique wellness, continuing with Melia’s strategy focused on the innovation. Going into the second quarter, recall that this area will include the results of the ME Mallorca and ME Ibiza hotels, both currently under refurbishment. These hotels will begin operations in May and June respectively. The fall in the number of rooms is due to the reclassification of hotels between Premium Europe and EMEA. Management contracts in the region, now includes the contribution of the 3 Innside hotels that opened in 2013, highlighting the performance of the Innside Madrid Genova (opened in January 2013) which increased RevPAR by 110%. 4

EMEA In owned and leased hotels in EMEA, RevPAR increased by 11.6%. Figures have been affected by a change in the scope of the EMEA region (linked to the incorporation of some hotels previously included in Premium Europe). Excluding the changes in the scope between Premium Europe and EMEA, EMEA RevPAR in owned and leased hotels increased by +6.1%. By region, the main highlights are the following: a) Paris: maintained a positive trend in the first quarter 2014 despite the impact of the increase in the VAT (from 7% to 10%) which negatively affected the whole hotel industry in Paris. In the case of Meliá, RevPAR increased by 9.7%, mostly explained due to the performance of the hotel Meliá Paris Champs-Elysées previously called the Meliá Alexander- which registered very positive figures (RevPAR +69%). This hotel is currently being renovated so in the first quarter 2014 closed some rooms leading to the improvement in RevPAR. Excluding the contribution of the Meliá Paris Champs-Elysées, RevPAR increased by 1.7%. b) Germany: The Company recorded positive figures (+6.1%) especially due to the excellent results of the hotels in Düsseldorf that benefited from the hosting of several trade fairs which had a significant impact.The incorporation of the Innside Düsseldorf Hafen in September 2013 also contributed positively, becoming one the main benchmarks in the city. c) United Kingdom: registered good figures (+7.1%), partially helped by the changes in sterling exchange rates. In local currency (pounds), RevPAR in the UK increased by 3.2% thanks to the improvement in the Individual traveller segment, especially Key Accounts and Transient Programs. To a lesser degree, of note is the better evolution of the Meliá Athens in Greece (RevPAR +27%) affected in 2013 by the political instability in the country. Regarding the hotels in Spain, included in the EMEA division, they also registered improved performance also impacted by the consolidation from January 1st of the hotels Gran Meliá Colón (Seville) (in accordance with the IFRS 10) and Gran Meliá Palacio de Isora (Tenerife), the last registering an increase in RevPAR of 11.9%, becoming the first largest EBITDA contributor in Spain. Additionally there was also a successful performance from the hotels in Spanish cities thank to the strategy implemented by the Company focused on the strengthening of the leisure component also in city hotels, taking advantage of Meliá leadership in the resorts industry. It highlighted the contribution of the Gran Meliá Fenix, Meliá Madrid Princesa and Meliá Barcelona Sarriá, demonstrating the relatively stronger performance of hotels in the upscale segment and with a higher component of international clientele, mainly in Madrid and Barcelona. On the other hand, excluding the change in the reporting perimeter, available rooms were affected mainly due to the incorporation of the Innside Düsseldorf Hafen and the Meliá Vienna, both registering excellent figures above the feasibility study. Regarding the RevPAR in managed hotels, overall RevPAR saw positive results. Despite the underperforming contribution of the hotels in Egypt, the internationalization process led to positive figures especially due to the excellent contribution of new contracts such as the hotel in Dubai.

MEDITERRANEAN RevPAR in Spanish resorts increased by 24.3% due to the positive evolution of occupancy rates (+11.7%) and prices (+11.3%). The explanation of the RevPAR evolution is due to the positive figures in the Canary Islands together with the good performance of the few resorts opened during the low season in the Balearic Islands. The Company stresses these positive figures, especially the figures for March (RevPAR +15.4%), especially taking into consideration the different period in which Easter 2014 fell (in April in 2014 versus March in 2013). 5

As was the case during the second half of 2013, the conflict in Egypt and North Africa benefited Meliá’s resorts, especially in the Canary Islands, where the improvement was above forecast, also benefited by the yield management policy implemented by the Company together with the strengthening of the Meliá’s positioning in alternative feeder markets such as Scandinavia, France and Belgium, leading the Company to maintain its expectations for a good summer season 2014, above last year figures and mainly explained by prices rather than occupancy. Available Rooms (6.2%) were affected by the incorporation of the Gran Meliá Salinas in the Mediterranean area (in March 2013 included in Premium Europe) offset by the sale of the Sol Trinidad in June 2013. Regarding the management contracts, the overall performance was also strong, mainly due to the contribution of the hotels in Malaga and the Canary Islands, while in Cape Verde it is worth mentioning the increase in VAT (from 6% to 15%) that will impact the total contribution at the management fees level.

SPAIN Total RevPAR in the Spain region decreased by -1.5% explained by the impact of the different timing of the Easter holiday compared to 2013 which affected hybrid destinations (also biased towards the leisure activity) and the ski resorts. In data to the end of April - which thus excludes the impact of the different timing of the Easter holiday RevPAR increased by 3%. On the other hand, if we take into consideration all the hotels in Spanish cities (including the hotels included in the EMEA division), up to March 2014 RevPAR improved by 1.6%, registering positive figures in almost all destinations, including Madrid. The figures for Meliá’s hotels in Madrid have been in line with the whole hotel industry as shown the latest reports from the Madrid Hotel Association which point towards an overall improvement in the last quarter of 2014. In this regard, only a few secondary cities maintained a negative performance such as Leon, Asturias or Seville. Continuing with the evolution of all Spanish cities, it is important to highlight the progressively better performance for Meliá as shown by the trend: January -0.7%; February +1% and March +4% (1Q2014 +1.6%). To end this chapter, it is important to recall that the main challenge during the quarter (but also going forward) is the evolution of the hotels around Barajas Airport due to its dependence on crews and lay-overs. At this stage highlight the better performance of the Barajas Airport which after 36 months showing decreases in terms of passenger’s arrivals, in February and March 2014 it has registered an improvement of passengers by 1.5% and 1.6% respectively. Available rooms decreased (-2.2%) due to the disaffiliation in 2013 of the Meliá Olid, Tryp Diana and Tryp Las Matas.

Meliá Vienna | Austria

6

HOTEL STATISTICS OWNED & LEASED 14 / 13 (in Euros) % Available Occupancy RevPAR A.R.R. rooms AMERICA 2014 78.8% 98.2 124.6 530.0

% o/ 2013

2.4%

17.3%

14.6%

-7.0%

2013 77.0% 83.8 108.8 569.6 EMEA 2014 65.0% 74.3 114.3 684.8

% o/ 2013 0.5% 11.6% 11.0% 40.1%

2013 64.7% 66.6 103.0 488.6 ME EUROPE 2014 67.8% 129.1 190.6 31.4

% o/ 2013 22.4% 54.9% 26.5% -80.9%

2013 55.4% 83.4 150.6 164.8 MEDITERRANEAN 2014 64.7% 32.1 49.7 450.6

% o/ 2013 11.7% 24.3% 11.3% 6.2%

2013 57.9% 25.9 44.7 424.3 SPAIN 2014 50.2% 34.4 68.6 819.6

% o/ 2013 -0.4% -1.5% -1.1% -2.2%

2013 50.4% 35.0 69.3 838.2 TOTAL 2014 63.1% 59.5 94.3 2,516.4

% o/ 2013 3.5% 10.1% 6.4% 1.2%

2013 60.9% 54.0 88.7 2,485.6

HOTEL REVENUES SPLIT OWNED & LEASED 14 / 13 (Million Euros)* Room F&B Total Revenues and Other Revenues AMERICA 2.014 47.4 59.9 107.3

% o/ 2013

10.3%

4.7%

7.1%

2.013 43.0 57.2 100.2 EMEA 2.014 50.9 23.0 73.9

% o/ 2013

56.4%

147.3%

76.6%

2.013 32.5 9.3 41.8 ME EUROPE 2.014 4.1 6.3 10.3

% o/ 2013 -70.5% -26.8% -53.7%

2.013 13.7 8.6 22.3 MEDITERRANEAN 2.014 14.5 10.0 24.5

% o/ 2013

32.0%

1.7%

17.7%

2.013 11.0 9.9 20.8 SPAIN 2.014 28.2 13.8 42.0

% o/ 2013

-3.7%

4.2%

-1.3%

2.013 29.3 13.2 42.5 TOTAL 2.014 145.1 112.9 258.0

% o/ 2013 12.0% 15.1% 13.3%

2.013 129.6 98.1 227.6

* These figures (2014/2013) do not include the Gran Meliá Puerto Rico Hotel.

7

Hotel Business Outlook Going into the results for the second quarter of 2014, the month of April was positively impacted by the different timing of the Easter holiday compared to 2013, which especially affects the resorts in the Mediterranean and to a lesser extent the hotels in Spanish cities, particularly in hybrid destinations with a higher component of leisure travel. During the Easter holiday, besides the different timing above mentioned, in line with the situation in the industry as a whole, it should be highlighted that the Company has registered a better performance from domestic demand leading to a very positive evolution of the occupancy levels during the 4 days of Easter -which reached 81%, 13 points above 2013. Particularly note the evolution of the occupancy levels in Mallorca, the Levante region or the Andalusia Coast during the period. Regarding the Spanish cities, it is also important to stress that total RevPAR increased almost 5% up to April once the impact of the Easter holiday is neutralized. Regarding the expected evolution for the entire second quarter, it should be mentioned that the Company expects a positive performance from the resorts in the Caribbean. Regarding the resorts in Spain, the positive trend in the Canary Islands will continue until the month of August, when the strong comparables versus 2013 will weaken the rate of growth in the area. Regarding the Spanish cities, the better situation in April seems to show continuity in May and June in the light of the on-the-books sales for the next 3 months, which points towards an increase in room revenues near 4 million Euros (explained by higher demand combined with modest price increases) thanks to the higher contribution of almost all segments, and especially from Business Groups. Also important is the contribution of OTAS, and especially the direct sales through melia.com. It should be mentioned that this better evolution will be reflected overall, including Madrid, with the main challenges once again being: a) the evolution of certain secondary cities totally focused on the Spanish business travel market, and b) the performance of hotels near Barajas Airport which are very dependent on business coming from lay-overs and air crews. In this regards, the Barajas Airport, after 36 months showing decreases in terms of passenger’s arrivals, in February and March 2014 it has registered an improvement of passengers by 1.5% and 1.6% respectively. Outside Spain, cities in Europe are expected to maintain healthy rates of growth for the whole year in the U.K, Germany -which in 2014 will host more Trade Fairs in some cities-, Paris and Italy. In this latter destination, the Company will also enjoy the good performance of the Gran Meliá Roma which during its third year of operations is reaching its cruise speed. Going into the summer season, despite the fact that it is early days given the late booking behaviour of the Spanish, Italian and Russian markets, current trends point towards a summer season 2014 slightly better than 2013, with strong figures in the Balearic Islands, Canary Islands and resorts in mainland Spain. In this regards, the Company expects a decrease in the number of roomnights from Russia given a) the devaluation of the Russian Rouble and b) the instability in the country; offset by a better performance in the Spanish travel market, which following the trend seen at Easter, the Company expects a recovery in term of roomnights of around 15% from domestic market. It will be also important: a) the appreciation of the sterling currency vs euro will allow a good behavior from the British feeder markets specially through the direct channels melia.com and OTAs; b) the contribution of the Gran Meliá Palacio de Isora in the Canary Islands which is expected to achieve record results in 2014; c) the higher contribution of the Calvià Beach Resort and Katmandú Park & Resort, even more so taking into consideration the opening of the new ME Mallorca; and d) the opening of the ME Ibiza (previously Sol s’Argamassa). For the whole portfolio, after a strong first quarter 2014, with positive figures in all regions (except “Spain” division), the Company maintains its guidance of mid-to high single digit growth in RevPAR for the full year 2014, more than 50% of which explained by price increases. 8

MANAGEMENT MODEL IN MELIÁ HOTELS INTERNATIONAL

Given the focus of the Company on the asset-light model and the growing importance of Meliá’s exposure to management agreements, from Year End 2013, the Company changed its reporting method to include more detail on the profitability of the overall management model.The table below reflects the income generated by Meliá as a hotel manager, including: • At the revenues level: the management fees from third parties but also from Melia’s owned & leased hotels. Additionally, this item includes “other revenues”, mainly commissions and other services. • At the expenses level: mainly includes the sales, marketing, and distribution expenses, etc. It is worth mentioning that the Management fees from third parties in the first quarter of 2014 reached 12.8 million euros, a 9.7% decrease versus the first quarter of 2013 in which Meliá reported 14.2 million euros in revenues. This is mainly due to: a) the integration of Gran Meliá Palacio de Isora and Gran Meliá Colón (from January 2014) which explains difference of 0.7 million euros in fees; b) together with lower fees from Asia (-0.2 million Euros), Brazil (-0.3 million) and Cuba (-0.7 million euros), these latest negatively affected by the Exchange rate; partially offset by the contribution of the Meliá Nassau Beach (Bahamas) after its incorporation in December 2013. When excluding the impact of the consolidation of Gran Meliá Palacio de Isora and Gran Meliá Colón and the impact of the Exchange Rate, Management fees from third parties would have decrease by 0.3 million Euros. Million Euros 2014 Total Rev. 48.8 Fees Owned & Leased hotels 15.8 Management Fees Third Parties 12.8 Other Rev. 20.2

Meliá Barcelona Sky - Dos Cielos Night Terrace | Spain

9

OTHER HOTEL BUSINESS

The Other Hotel Business item basically includes the contribution of casinos, golf facilities and Sol Caribe Tours, a tour operator based in Latin America. The better performance versus 2013 (revenues by 15.9 mn in Q1 2014 versus 14.9 million euros in Q1 2013) lies in the higher contribution of Sol Caribe Tours.

REAL ESTATE Total Revenues reached 2 million Euros, a slight decrease versus the first quarter of 2013, mainly linked to the lower income from rentals of the business premises at the ground level in the hotel Gran Meliá Caracas.The current law now applies a new limit on the price per square meter in rental premises. On the other hand, the Company has not generated any capital gains from asset rotation (neither in the first quarter of 2013), maintaining the guidance for asset sales of 100-125 million euros in 2014 devoted to decrease the net debt levels.

CLUB MELIÁ Following the efforts made by the Company in 2013 focused on the cost contingency plan, in 2014 the focus of the Club Meliá is on strengthening sales, especially taking into consideration: a) the better global economic climate which could favor the purchase of this type of product finance driven; and b) the contribution of the Gran Meliá Palacio de Isora and the Paradisus Resorts in Playa del Carmen (Mexico) which are progressively reaching its cruise speed. Furthermore in 2014 the Company will take advantage of the restructuring program took in place in 2013, which re-distributed the Club Meliá resources including the restructuring of the headquarters and sales offices worldwide. Up to March 2014, total revenues in Club Meliá improved by 1.5million euros versus the first quarter of 2013, showing a better performance in terms of: a) The number of weeks sold, especially in the Dominican Republic, Playa del Carmen and Tenerife, focusing the strategy on gaining and retaining high value customers while improving the efficiency of sales as reflects in the better performance of the closing sales ratio. b) Increases in prices, especially in the Dominican Republic, where prices increased up to 15% in some cases. c) Higher revenues coming from the Club Meliá Network, which is registering results above last year thanks to a higher number of members together with the improvement in the profitability of the units thanks to the synergies created with the hotel business. From the costs point of view, the Club Meliá is taking advantage of the measures took in 2013, which are allowing to control headquarter and the personnel expenses, while improving the margins. Just to conclude with the evolution of the Club Meliá, recall that one of the main efforts in 2014 is the control of the delinquency rates, expecting an improvement for the whole year mainly thanks to the stronger sales (through the capture of better prospects) and the implementation of the best-of-class customer care service for the most efficient and effective fit.

OVERHEADS Recall that this item only includes the overheads in Meliá Hotels International. The evolution versus the same period last year lies in the consolidation last June 2013 of Idiso, Meliá’s distribution platform, which has become a key driver for income generation in the Company.

10

INCOME STATEMENTS

NOTE: In 2013 the Company changed the accounting method in consolidated accounts regarding the consideration of the conversion option linked to the convertible bond issued in 2009 as an equity instrument, despite the cash settlement option. Therefore, since January 1, 2013, the conversion option has been registered as a liability as a financial derivative instrument, separable from the liability component of the bond issue in 2009, with the accumulated impact of previous years considered non material. For the sole purpose of improving comparability, certain non-material adjustments have been made to the first quarter 2013 figures, including this change in the accounting method. Revenues Total revenues increased by 11.9%. Hotel revenues increased by 13.3% thanks to a +10.1% improvement in RevPAR, while Club Meliá also reported good figures with a +8.5% improvement. The contribution of the Real Estate division in the first quarter was non-material due to the lack of capital gains from asset disposals in both periods. Other Company businesses also reported better figures, mainly due to the contribution of Sol Caribe Tours, a tour operation business based in LatAM. Excluding changes in the scope, total revenues would have gone up by 6.8%. Operating Expenses Raw materials, Personnel expenses and Other operating expenses increased by 12.2%, 13.7% and 6.9% respectively, affected by the changes in the perimeter. On the same basis, the evolution of expenses would be the following: Raw materials +5.9%, Personnel expenses +1.4% and Other operating expenses +4.8%. Rental expenses grew by 5.9% (+1.2 million euros). Recall that related to the agreement signed last December 2013 with Equity Inmuebles S.L. by which the Company shortened the maturity period of the 17 hotels leased from Equity Inmuebles, the main impact at the accounting level has been a change in the accounting method for these rentals, which have changed from “financial leases” to be considered operating leases. Additionally it should be considered the incorporation of the Innside Düsseldorf Hafen and the Meliá Vienna. On the other side the Company has achieved significant savings during the period mainly due to: a) the disaffiliation in 2013 of the hotels Tryp Las Matas and Tryp Diana which were negative contributors at the EBITDA level; and b) the renegotiation of some rental contracts. EBITDA All the above mentioned allowed Meliá to register an improvement in EBITDA of 21.7% (€9.5 million Euros). When excluding the impact of the new operating leases (due to the agreement with Equity Inmuebles S.L.), EBITDA would have increase by 27.3%. At the “Profit / (loss) from Associates and JV” level, the better results of Adprotel, owner of the ME London, during its second year of operations, together with better figures in Altavista Hotelera, owner of the Meliá Barcelona Sky, allowed an improvement in this item of 2 million euros. To end this chapter, of note is the impact of the “Discontinuing Operations” item that includes the profit and loss account generated by the assets in Puerto Rico (1.2 milion euros EBITDA).

11

(Million Euros)

March 2014

March 2013

Revenues Split: Total HOTELS Management Model Hotel Business Owned & Leased Other Hotel Business

322.7

285.7

48.8

43.1

258.0

227.6

15.9

14.9

Real Estate Revenues

2.0

2.6

Club Meliá Revenues

19.2

17.7

Overheads

18.7 13.5

Total Revenues Aggregated Eliminations on consolidation

362.5

319.5

-46.7 -37.1

Total Consolidate Revenues

315.9

282.4

Raw Materials

-44.3

-39.5

Personnel expenses

-95.2

-83.7

Other operating expenses

-102.1

-95.5

Total Operating Expenses

-241.5

-218.7

10.4%

EBITDAR

74.4 63.7

Rental expenses

-21.3

EBITDA

53.1 43.6 21.7%

Reestructuring Depreciation and amortisation

-20.1

0.0 1.0 -21.5

-20.4

0.0

1.0

EBIT (OPERATING PROFIT)

31.6

23.2

Financial Expense

-25.6

-24.6

Other Financial Results

4.1

13.3

Exchange Rate Differences

1.7

-0.4

Other Interest Expense

0.0

-3.2

-19.9

-14.9

Profit / (loss) from Associates and JV

-3.0

-5.0

Profit/(loss) from ordinary activities

8.7

3.3

Extraordinary profit/(loss)

0.0

0.0

Profit before taxes and minorities

8.7

3.3

Taxes

-1.6 -0.8

Continuing operations

7.1

2.5

Discontinued Operations

0.0

1.7

Group net profit/(loss)

7.2

4.2

Minorities

1.0 -0.1

Profit/(loss) of the parent company

8.2

Negative differences in consolidation

Total financial profit/(loss)

12

11.9%

4.1

36.3%

-33.5% 165.5% 165.5% 190.1% 70.7% 99.1%

FINANCIAL RESULTS AND DEBT

FINANCIAL RESULT The Net Financial Result increased by 5 million euros versus the first quarter of 2013, due to the net effect of: a) The increase in the interest from borrowings by 1 million euros mainly due to higher gross debt over the first quarter2013 b) 9.2 million euros less in “Other Financial Results” mainly due to: 1. In Q1 2013, the Company registered financial income of 6.5 million euros due to the mark to market of the embedded derivative linked to the issue of the convertible notes. This year the Company will not see any impact due to the decision made in December 2013 to irrevocably waive the Company’s right to satisfy the conversion of the Notes in cash (cash settlement election). 2. Higher financial expenses (1.5 million Euros) due to the impact of hyperinflation in Venezuela. c) Partially offset by the reduction in “Other financial expenses” of -3.2 million euros which has been reclassified as “Rentals” following the agreement signed last December 2013 with Equity Inmuebles S.L. (thousands euros) 1Q 2014 1Q 2013 Exchange differences 1.676 (420) Borrowings (26.600) (24.585) Other financial expenses 0 (3.226) Other financial incomes 4.057 13.345 Net Financial Income (19.867) (14.886)

FINANCIAL DEBT Regarding debt management, the Company’s net debt has increased compared with December 2013 by 84 million Euros (+7.25%), reaching 1,242 million euros. This increase is largely explained by: a) the incorporation of 29 million of debt held by the Company Colon Verona S.A. after its consolidation on the 1st of January 2014 (in accordance with the IFRS 10); b) the devaluation of the Bolivar in Venezuela in the first quarter of 2014 which had an impact of 20 million euros; and c) the evolution of Cash Flow from Operating Activities for which the first quarter used to be the worst. The Company maintains the guidance for 2014 to deleverage the balance sheet, partially thanks to asset rotation by a minimum of 100-125 million euros, the improvement of business performance and the possible conversion of the Convertible Bond which matures in December 2014 (€200mn).

Maturity debt profile, excluding credit facilities. Million €uros

13

MELIÁ ON THE STOCK MARKET

The stock performance was flat (+0.05%) during the first quarter 2014. The average trading volume has had an important increase from the second quarter 2013, when Banco Sabadell (May 2013) sold its 6% stake in Meliá, allowing a change in the free float of the Company up to 35%.



1Q2013 1Q2014

Average daily volume (thousands shares)

249,06

903,84

Meliá performance

-8%

0%

Ibex 35 performance

-3%

4%

2%

7%

Ibex Med Cap performance NOTE: Meliá’s shares are listed on the IBEX Medium Cap and FTSE4Good Ibex index.

Meliá Jinan | China

14