Meli Hotels International presentation

ME Barcelona (Spain)

Gran Meli Shanghai (China)

Meli Dsseldorf (Germany)

ME London (United Kingdom)

Meli Hotels International presentation Agenda

INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7

8 12

APPENDIX Positioning History Diversification Sustainability 15 16 17 19

Paradisus Punta Cana (Dominican Republic)

ME Cancn (Mexico)

Meli Bali (Nusa Dua, Indonesia)

Meli De mar (Majorca, Spain)

Meli Hotels International presentation

Meli Dsseldorf (201) Opened in October 2009

Meli Hotels International set to take advantage 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, Dsseldorf and Frankfurt. Revenue Management & CRM Strategy - 2.5mn members of mas loyalty program. - melia.com as fastest increasing distribution channel.
15 16 17 19
1

INVESTMENT CASE Business Evolution 3 Valuable Hotel Portfolio Sound Strategy Financials 7

2010 RevPAR +8.9% 2011e High single digit growth

8 12

APPENDIX Positioning History Diversification Sustainability

2010 51% of RevPAR due to prices 2011e Important contribution of prices in RevPAR evolution Hotel EBITDA Margin improviment of +149 bps in 2010 (+214 on like-for-like basis) CAGR 2011-14e +0.6% +1.0% +1.2% +0.3%

The Cost Efficiency Programme during the 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 number of rooms in core markets.
Dominican Republic Mexico Rest of Europe Spain

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

Meli Hotels International presentation

Meli Valencia Palacio de Congresos

coming from an environment where Melias RevPAR and Ebitda has comparatively outstand
19,100

INVESTMENT CASE
20.000
16,800

Business Evolution 3 Valuable Hotel Portfolio Sound Strategy Financials 7

17,800

18,700

12.990

12,879

7.843

6,153

5,754

3,738

3,835

3,330

3,527

(in million$)

4,696

5,071

Revenues 15.000 Evolution 10.000

5.000 0

11,619

11,032

8,497

10,908

11.691

1,927

1,824

615.1

12
15%
7% 7% 7% 2% -1% -13% -17% -17% -25%
1,982

564.2

596.1

641.7

APPENDIX Positioning History Diversification Sustainability 15 16 17

6% 1%

6%

10% 5%

11% 4% 0%

1,642

(% Change)

RevPAR Evolution

5% -5% -15% -25%

5.60%

8%

6%

9%

-1%

-3%

-15%

-18%

-17%

1,390

19 EBITDA Evolution

2.000 1.500
585 645 552

1,253

949

1,183

1,102

943

1,164

923

582

1.000 500 0 -500

885

472

480

487

200.5

335

198.1

164.5

166.6

-67

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

2008

274

2009

289

2010

336

(in million$)

436

365

1,798

Meli Hotels International presentation

Innside Dresden (180) Opened in April 2010

, and enabled us to deliver RevPAR growth in 6 consecutive quarters,

INVESTMENT CASE Business Evolution 3 Valuable Hotel Portfolio Sound Strategy Financials 7

Quarter 3Q11 2Q11 +7.2% +11.5% +13.0% +10.1% +11.9% 5% 10% 15% RevPAR growth +10.0%

8 12

APPENDIX Positioning History Diversification Sustainability 15 16 17 19

1Q11 4Q10 3Q10 2Q10

Meli Hotels International presentation

Tryp Berlin Mitte (225) Opened in December 2010

and leading to good set of underlying 9M11 results

INVESTMENT CASE

9M Profit & Loss Account

Business Evolution 3 Valuable Hotel Portfolio Sound Strategy Financials 7

8 12

APPENDIX Positioning History Diversification Sustainability 15 16 17 19

(million Euros) REVENUES EBITDAR EBITDA EBIT EBT Net Profit at.

Sep 11 969.5 245.1 176.6 106.7 47.0 38.3

Sep10 976.7 281.1 216.1 143.8 86.4 71.7

% -0.7% -12.8% -18.3% -25.8% -45.6% -46.6%

5.6%
...when excluding capital gains...

13.9%
Note: Capital gains, 9M11: 33.6 mn; 9M10: 93.2 mn

OUTLOOK
Worldwide Resorts likely to lead RevPAR growth along with Gateway Cities

RevPAR9M11: +9.1% (Q3: 10.0%) Cost per stay decreases by 0.2% Underlying Hotel Ebitda margin: 126 bps

Meli Hotels International presentation

Melia Atlanta (502) Opened in October 2010

thanks to a valuable hotel portfolio in prime locations recently refurbished / incorporated.

New independent valuation of Real Estate assets by 2011 Year-End Development of 5 mn square meters in Salvador de Bahia (Brazil) combining hotels, mixed ownership products and residential

INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7

8
Gran Melia Colon, Seville (189) Refurbished in 2009

12

APPENDIX Positioning History Diversification Sustainability 15 16

Melia Barcelona (333) Refurbished in 2008

17 19

Melia Madrid Princesa Refurbished in 2009

5 Mn square meters in Salvador de Bahia (Brazil)

Meli Hotels International presentation

Meli Dubai Opening in 2011

Asset Light(er) Model & Brand Equity underpins expansion...

Consistent internationalization plan, via low capital intensive formulas, reinforcing Upscale y Premium brands emphasizing those countries where the Group has experience and consolidated know-how: Pipeline: 32 hotels (8,918 rooms) to be incorporated in the 2011-2014 period:
8 12

INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7

86% to be incorporated internationally: Focus on Asia & Arab Gulf States

APPENDIX Positioning History Diversification Sustainability 15 16 17

Key European Markets (Germany, Italy, UK, France and other major cities in Europe) LatAm and Caribbean Mediterranean Rim

19

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.

Meli Hotels International presentation

Meli Tortuga (Cape Verde) (234) Opened in May 2011

via Joint Ventures in gateway cities in US, Europe & Asia

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

INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7

8 12

APPENDIX Positioning History Diversification Sustainability 15 16 17 19

Wyndham Hotel Group: Largest franchise group worldwide with nearly 7,100 franchised hotels and more than 590,000 rooms. Sale of the Tryp brand to Wyndham Hotel Group for $42.5 Mn (34.7 Mn) and agreement with Wyndham to keep using the Tryp brand over a period of 20 years. Strategic alliance between both Companies to develop the Tryp by Wyndham brand in key international cities, especially across Europe & LatAm. Cooperative operation of the hotels using both central reservations systems and loyalty programs.
- Wyndham Rewards programme involves more than 8 million active members while Meli Hotels International loyalty programme, mas, nearly 2.5 million members.

JIN JIANG: Leading hotel group in China with more than 450 hotels and 74,000 rooms. Long-term partnership encompassing hotel development, marketing & sales, reservations systems and loyalty programmes. Allowing both chains to grow in the market in which the other enjoys competitive advantages through a joint growth strategy in China and Europe. Adaptation of hotel services to the needs of Chinese and European guests, one of the major challenges for both companies.

Meli Hotels International presentation

and mixed ownership formulas in LatAm & Caribbean, i.e. 290K sq mts in Playa del Carmen (Mexico)
2 All-Inclusive Paradisus Resorts in Playa del Carmen (Mexico). 906 hotel rooms including 340 Club Meli units. Opening in November 15 2011.

INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7
Playa del Carmen (Mexico) Opening in 2011

8 12

APPENDIX Positioning History Diversification Sustainability 15 16 17 19

Family Concierge Suite

Royal Service Junior Suite

P L AYA D E L C A R M E N A D U LT S P L AYA D E L C A R M E N FAMILIES

PA R A D I S U S L A P E R L A

SHARED AREAS

PA R A D I S U S L A E S M E R A L D A

An exclusive adult only resort featuring Royal Service: - 394 suites, including swim-up suites - 5 restaurants and 4 bars - Large swimming pool - Access to golf courses
Royal Service Junior Suites Deluxe Bathroom

- Convention Center - Exclusive shopping area - YHI SPA - Gaby Club with chill out area

An exclusive family oriented resort featuring Family Concierge: - 512 suites, including swim-up suites - 4 restaurants and 3 bars - Open area Kids Club - Large swimming pool - Access to golf courses

10

Meli Hotels International presentation

ME Madrid (192)

supported by opportunity for flagship acquisitions i.e. ME London.

Acquisition of free-hold for 133 Mn.
ME Cancn (419) ME London (157) Opening in 2012

INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7

8 12

157 rooms & Convention Centre. Total built area of 17,000 sqm. Strategic asset in a key destination, positioning the ME by Meli brand in one of the most important feeder markets. Scheduled to open in Q2 2012. Design-driven & experiencebased hotel with a strategic location alongside Covent Garden & Trafalgar Square Brand-building assetfor future growth of ME by Meli brand through Management, Franchise and JV.

APPENDIX Positioning History Diversification Sustainability 15 16 17 19

ME Cabo (155)

ME Barcelona (259)

Strand 336, London WC2R 1HS

ME Vienna (255) Opening early 2013

11

Meli Hotels International presentation

Tryp Condal Mar (178) Opened in June 2010

All within a framework of appropriate debt management...

Net debt' 2011 target of below 1 billion Euros.
3 7

INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials

Average interest rate expected in 2011: ~4.5%. Accomplishment of Covenants 1H2011 & confidence in meeting them in 2011. - 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.

8 12

APPENDIX Positioning History Diversification Sustainability 15 16 17 19

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

(*) Includes 18 mn of new money

12

Meli Hotels International presentation

Meli Sharm (468) Opened in July 2010

which leads to a comfortable Liquidity Position.

Currrent liquidity levels up to September at 348.0 mn compares to debt maturities for the remaining of 2011 and 2012: 284.6 mn
Liquidity Situation
Cash and short-term deposits
8 12

INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7

Mn 307.1 40.9 348.0

Debt Maturity
450.0 400.0 350.0 300.0 299.5 255.8 (1) 250.0 401.3

Available credit facilities Total

APPENDIX Positioning History Diversification Sustainability 15 16 17

FSF: 234.0 Mn (138.4 + 95.6)

200.0 150.0 100.0 50.0 28.7 26.2 26.6

19

25.1 2012 2013 2014 2015

25.8

21.4 2019

18.9 2020

0.0 4Q11 2016 2017 2018

13.1 2021

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

In the current financing environment, Meli Hotels International will focus on maintaining high liquidity levels vs maturities

13

Meli Hotels International presentation Appendix

Sol Gavilanes (Menorca, Spain)

Meli Hotels International presentation

Meli La Quinta (172) Opened in March 2010

Meli Hotels International is a hotel company with a global reach

INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7
Rest of Europe 72 hotels (22%) Spain 157 hotels (45%) MEA 5 hotels (2%)

8 12

Largest hotel group in Spain and 17th company worldwide (1) with 308 hotels and 77,808 rooms(2) in 28 countries

Asia 7 hotels (3%)

APPENDIX Positioning History Diversification Sustainability 15 16 17 19

At a glance:
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 the FTSE4Good Ibex index

LatAm 67 hotels (28%)

Note: % of rooms (2)

6th largest Hotel Group in Europe (1)

Ranking 1 2 3 4 5 6 Company Intercontinental Accor Groupe du Louvre TUI AG The Rezidor Hotel Group Meli Hotels International (1) Rooms 646,679 499,456 91,409 83,728 83,200 76,887 Hotels 4,438 4,120 1,097 297 389 305

(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

15

Meli Hotels International presentation

Gran Meli Shanghai (685) Opened in December 2009

built through a long history of growth, consolidation & innovation

Organic growth through reinvestment of profits
3 7

INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials

8 12

- 50s: First resort in Mallorca-Spain - 60s: Development in Balearic Islands - 70s: Expansion into other major Spanish resorts - 80s: Growth to Spanish cities - 90s: Development in LatAm - 00s: Presence in European gateway cities Acquisition of hotel chains - 1984: Hotasa - 1986: CHM - 1987: Meli hotels - 1999: 8 hotels in Paris - 2000: Tryp - 2007: Innside 32 hotels 11 hotels 22 hotels 60 hotels 11 hotels in Germany

APPENDIX Positioning History Diversification Sustainability 15 16 17 19

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

16

Meli Hotels International presentation

Meli Bilbao (211) Opened in September 2009

The Company has a balanced portfolio...

INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7

Room Portfolio by location

24% 3%

Room Portfolio by Ownership

6% 27%

28%
8 12

18% 45%
Spain Rest of EMEA Asia LaTAM

49%
Owned Leased Managed Franchised

APPENDIX Positioning History Diversification Sustainability 15 16 17 19

Room Portfolio by Category

Upscale segment

Room Portfolio by Segment*

41%
CITY

19%
Midscale 53%

36%

34%

11%
Luxury segment

59%
RESORT
(*) 52% Resort / 48% city in owned & leased NOTE: All figures by number of rooms (November 2011)

17

Meli Hotels International presentation

Meli Luxembourg (161) Opened in May 2009

...with differentiating elements based on diversification.

BALANCED RESORT / CITY EBITDA SENSIBLE CUSTOMER SEGMENTATION1

INVESTMENT CASE Business Evolution Valuable Hotel Portfolio Sound Strategy Financials 3 7

47%
CITY

8 12

BUSINESS 44%

LEISURE 56%

18%
GROUPS

26%
INDIVIDUALS

24%
GROUPS

32%
INDIVIDUALS

APPENDIX Positioning History Diversification Sustainability 15 16 17 19

53%
RESORT
CLIENTS BY REGION OF RESIDENCE
(1) Revenues

2% 2% 3% 2% 3% 3% 3% 11% 9%

32% 17%
Spain Other UK USA Germany Italy France Mexico Russia Canada Venezuela Netherlands
NOTE: figures 2010

13%

18

Meli Hotels International presentation

Meli Hotels International, much more than a leading Company

Sustainability at Meli Hotels International
3 7

INVESTMENT CASE Business Recovery Valuable Hotel Portfolio Sound Strategy Financials

OUR VISION
We contribute to (sustainable) development of the communities in which we operate and of the people that live on them. Building our legacy.
Create value for our Stakeholders Public Positioning Director Plan RELATION COMMUNICATION PRESENCE EMPLOYEES CUSTOMERS SHAREHOLDERS SUPPLIERS SOCIAL ENVIRONMENT
FTSE4Good IBEX BHC CERTIFICATION

8 12

APPENDIX Positioning History Diversification Sustainability 15 16 17 19

VISION

Create value for Meli Hotels International

Sustainable Development Plan

GLOBAL COMPACT

GRI REPORT

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

Our commitment in figures (2010)

216 activities to celebrate the International Year of Biodiversity 29 hotels with environmental certification Reduction of 4,3% in kg CO2 per stay Reduction of 8,4% m3 of water consumed per stay 96,3% of purchases from local suppliers 10.925 people involved in Solidarity Day at Meli Hotels International

19

This report is a communication made, or approved for communication by Meli Hotels International. It is directed exclusively to eligible counterparties and professional clients. No persons other than an eligible counterparty or a professional client should read or rely on any information in this report. This research report is being distributed by Meli Hotels International, purely as a resource and for general information purposes and only 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 exercise of judgement by recipient. Each recipient should consider the appropriateness of any investment decision having regard to their own circumstances, the full range of information available and appropriate professional advice. Each recipient should make their own investment decision regardless of the 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 based on publicly available information and on sources believed to be reliable and in good faith, but that information has not been verified independently and no representation or warranty, either express or implied, is made as to their accuracy, completeness or correctness. Meli Hotels International may amend, supplement or updated the contents of this report in such form and in such timescales as Meli Hotels International deems appropriate. Meli Hotels International reserves the right to express different or contrary recommendations and 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 invitation to 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. Meli Hotels International accepts no liability whatsoever for any loss or damage arising from any use of this report or its contents. Investors should bear in mind that past performance or results are no guarantee of future performance or results. Price of securities or instruments or the results of investments may fluctuate against the investors interest and may even lead to 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 knowledgeable and experienced investor for your information and no part of this document may be (I) copied, reproduced or duplicated by any form or means, (II redistributed or (III) quoted or published, for any purpose, without the prior, written consent of Meli Hotels International. Breach of these restrictions may constitute breach of law in the relevant jurisdictions. Meli Hotels International may distribute reports such as this in hard copy or electronically.

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