Press room

Madrid, 16 March 2007

THE SHAREHOLDERS OF NH HOTELES GIVE THEIR UNANIMOUS SUPPORT FOR THE CAPITAL INCREASE

• Demand for shares was such that the capital increase could have been 2 times bigger

• Strong support from NH Hoteles shareholders for its strategic plan

The shareholder response to NH Hoteles's €250M Capital Increase has been overwhelming, now that the preferential subscription period is over.

16,026,084 of the 16,371,971 new shares that have been issued at a value of €15,27 have been subscribed to, a response rate of 97.8%.

Moreover, during the additional subscription period, when the Company's shareholders are entitled to subscribe more than their share of shares, all the 345,887 shares pending to be subscribed will be allotted on a pro-rata basis to all those shareholders who had applied for them, and because there have been applications for more than 33 million more shares for this tranche, the capital increase has been fully subscribed. The demand has been so strong that the capital increase could have been 2 times' higher than set by NH Hoteles.

The fact that the Capital Increase was made with a right of first refusal and that as a result the entire Capital Increase has been subscribed, is a clear sign of the extensive support of NH Hoteles shareholders for the recent acquisitions made in Italy (Jolly Hotels and Framon) and its strategic development plan.

NH Hoteles recently presented a three-year plan aimed at doubling its results. This will involve capital expenditures totalling €1,300M. By embarking on this development plan, NH Hoteles expects to double its operating income (EBITDA) from its hotel business, to above €300M in 2009.

NH Hoteles plans to use this strategic plan to strengthen its position as leader in the medium price range segment in Europe by focusing its capital expenditures on growing organically in the major markets on the continent where it already has a well-entrenched presence. The expansion plan also envisages integrating Jolly and Framon, two hotel chains that have recently been added to the company, into its Italy Business Unit. The target set by the company for its Italy Business Unit will lead to a doubling of its current results by the end of 2009, using this opportunity to improve the operating efficiency of the hotels that have been acquired.

ABOUT NH

NH Hoteles (www.nh-hotels.com) ranks third among European business hotels. NH Hoteles, after the latest acquisitions in Italy, has 330 hotels with 48,735 rooms in 21 countries in Europe, Latin America and Africa. NH Hoteles has at present 29 new projects for hotels under construction, which shall have more than 5,000 new rooms.

NH Hoteles stands out in quality both as regards services and facilities, with very carefully thought out decoration, intended to please all tastes and making the guest feel comfortable. NH Hoteles’ establishments offer the most advanced technologies designed to facilitate the guest’s communication as well as his work and leisure.

The restaurants are another priority for hotels in the chain, offering guest first-rate cuisine. Furthermore, the prestigious restaurateur Ferran Adrià, creator of El Bulli restaurant, has entered into an association with NH Hoteles, launching new concepts such as "nhube", pioneering spaces in the hotel sector combining food, leisure and rest for the chain’s guest, and "Fast Good".

NH Hoteles is listed on the Stock Exchange of Madrid (in the selective Ibex 35 Index).

FOR MORE INFORMATION:
Communication Department of NH Hoteles
Tel: + 34 91 451 97 62
+ 34 91 451 97 18 (switchboard)
e-mail: comunicacion@nh-hotels.com

BOOKING CENTRE
Tel: 902 115 116 (From Spain)
Tel: +800 0115 0116 (Only from A, BE, FRA, GER, IRL, NL, ITL, PT, SWTZ, UK)
Tel: +34 91 398 44 00 (From other countries)
Web: http://www.nh-hotels.com