The Caribbean and Cape Verde Are the Focus of RIU in 2007

Riu Hotels & Resorts' gross revenue exceeded 1.3bil USD in 2006

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. October 14, 2008

MALLORCA, Spain, February 5, 2007. This November, RIU will open its largest resort ever on the shores of the Pacific in Los Cabos, Mexico. Named Riu Santa Fe, this all-inclusive, 5-star leisure resort will feature 902 rooms. At a price of over 135 million USD to complete, the resort represents the single largest capital expenditure in RIU's 54-year history.

RIU's other major investments this year will be devoted to building two other new resorts - Riu Karamboa on Boavista Island in Cape Verde and Riu Montego Bay in Jamaica. Both of these properties are scheduled to open in 2008.

In 2007, RIU will also re-open its resort in Aruba. Purchased two years ago, the property is currently in the midst of a complete renovation transforming it into a Riu Palace Hotel.

In total, RIU will invest over 445 million USD in Cape Verde and the Caribbean to purchase additional land, refurbish existing properties and build new flagship resorts.

RIU's gross revenue exceeded 1,3 billion USD for the first time in 2006 and the company anticipates its income to reach 1,4 billion USD in 2007.

RIU in Mexico

In just ten years time, RIU has invested over 1.4 billion USD in building resorts across Mexico. The new Riu Santa Fe will be RIU's 13th hotel in the country.

Hotel Riu Vallarta

Av. de los Cocoteros s/n

63732 - Nuevo Vallarta - Nayarit - Mexico

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RIU in Cape Verde

In 2008, RIU will complete the Riu Karamboa, its third hotel in Cape Verde (western Africa). This new resort will be RIU's first on Boavista Island, which is located next to the Island of Sal where the ClubHotel Riu Garopa and ClubHotel Riu Funan'a are already operating. These properties have gained tremendous popularity in Portugal helping to make that country one of RIU's strongest markets in Europe.

Riu Hotel renovations

In 2007, RIU will focus the majority of its renovation efforts on four hotels: ClubHotel Riu Rom'antica in Mallorca, Riu Palace Tres Islas in Fuerteventura, Riu El Mansour in Tunisia and Riu Paradise Island in the Bahamas.

The opening of the Riu Palace Aruba is another big challenge for 2007.

This first Riu property in Aruba will be inaugurated in July 2007.

RIU's global statistics (2006)

RIU operates 109 hotels in 18 countries with a total of 73.000 beds worldwide. The company employes over 18.000 individuals and had a gross revenue of 1,3 Billion USD in 2006.

Performance update for 2006 and forecasts for 2007

All RIU hotels in Spain showed average performance except those in Mallorca, where the summer season continued to benefit from the recovery that started in 2005. The situation is not expected to change in 2007. Modest results were seen in Andalusia and the Canary Islands, which are expected to continue in 2007. The Caribbean delivered good results and benefited from a lack of natural disasters in contrast to the severe hurricanes that took place in 2005. High occupancy rates were seen for RIU's two resorts on Cape Verde.

RIU's significant honors and accomplishments in 2006:

Named "World's Best Leisure Hotel Group" in Belgium - November 06

Received 34 awards from Thomson - November 06

Opened Riu Vallarta in Mexico - November 06

Completed construction of the Garopa-Funan'a resort in Cape Verde - October 06

Named "World's Best Leisure Hotel Group" in Great Britain - September 06

Voted "Best Leisure Hotel Group" in Canada - August 06

Named world's 28th ranked hotel group by Hotels magazine - July 06

Surpassed 18,000 employees - June 06

Opened Riu Palace Punta Cana - May 06

Opened Riu Palace Riviera Maya - February 06