Sol Melia Hotel Group Buys Tryp
Aug. 21, 2000
MADRID, Spain (AP) _ Spain's largest hotel group Sol Melia is buying the Spanish hotel chain Tryp for $337 million in cash and stock.
Sol Melia said in Monday's announcement it will incorporate Tryp's hotels into its own operations. The combined group will have a total of 201 hotels in Spain.
The merger will see the incorporation of 60 hotels, with 9,700 rooms, as well as another 15 establishments. Sol Melia already operates 275 establishments throughout 29 countries, the company said.
The deal will be carried out through the payment to Tryp shareholders of $151 million in cash and 13.2 million Sol Melia shares valued at about $186 million.
Tryp shareholders will be getting a 7.2 percent stake in Sol Melia and Tryp chief executive Rufino Calero will take a post on Sol Melia's board.
The 7.2 percent stake will make Tryp's shareholders the second biggest in Sol Melia after the Escarrer family, which has a 61 percent stake.