Press room

Madrid September 30, 2007

NH HOTELES INCREASES NET PROFITS BY 72% IN THE YEAR TO SEPTEMBER

• Earnings reached €1,098.4m, EBITDA increased 65.5% to €197.7m and net profits grew to €49.8m.

• Sales at the hotel business rose 39.5% to €1,038m and EBITDA, including the incorporation of the chain in Italy, grew 66% to €185.4m.

• RevPar (revenue per available room) grew 5.2% in Europe as a consequence of a 6.5% increase in average prices.

• The trend for all business units was positive in terms of sales and EBITDA, thanks to stable growth in average prices.

Net profits at NH Hoteles improved significantly in the first nine months of the year, increasing 72% compared with the same period last year, to €49.8m. Group sales rose 43.8% to €1,098.4m and EBITDA (operating profits) reached €197.7m, 65.5% higher than in the first nine months of 2006, confirming the strong growth in the business compared with the previous year.

The increase in RevPar (revenues per available room) and the incorporations in Italy (Jolly Hotels and Framon) were an important driver in the group''s hotel business, where earnings growth reached 39.5% (€1,038m) and there was a 66% improvement in EBITDA to €185.4m.

The performance of the Benelux business unit was of particular note, with an acceleration in sales compared with the first six months of the year to €211.5m (excluding the new incorporations), 5% more than in the same period last year. EBITDA was in line with the current trend and increased 10% in these countries. In terms of RevPar, Benelux increased 5.4%, mainly thanks to a 6.9% increase in prices. Particularly important was the strong performance of Brussels, where there was a substantial increase in average prices, RevPar and occupancy levels.

In Germany, and excluding any of the new openings, sales reached €158m, an improvement on the same period last year. The business unit was able to maintain average prices (which grew 1%), bearing in mind that there was a considerable increase in prices in 2006 at the time of the World Cup.

Austria, Switzerland, Hungary and Rumania, excluding new incorporations, posted positive growth in the first nine months, with sales growth of 7% to €40.2m. EBITDA at this business unit reflected favourable growth and reached €2.1m, up from €0.6m last year. RevPar made particularly strong gains (7.8%), thanks to an 8.7% increase in average prices. September was a particularly good month in Vienna, thanks to being the venue for the European Congress of Cardiology.

Spain, excluding earnings from new hotel openings, posted RevPar growth of 6%, with price rises principally in the more important cities, particularly in Barcelona where a solid trend has now consolidated. The Spain business unit, excluding new openings, increased earnings by 7% to €305.2m, together with EBITDA growth of 25%.

In Italy, excluding the incorporation of Jolly Hotels and Framon, hotel earnings soared 81%. The new incorporations in Italy are in the initial stages and posted significant growth in RevPar (+16%) and ADR (average prices) was 35.8% higher than in the same period last year. As regards the integration of the Italian chains Jolly Hotels and Framon, NH Hoteles has led the business unit since the beginning of the year and has already and in record time installed the NH Hoteles IT systems.

As a reflection of unfavourable exchange-rate movements, the America business unit reported flat sales growth of 2% to €49m and EBITDA growth of 11% from the hotel business, excluding new openings. At constant exchange rates, RevPar in Argentina and Mexico increased 25% and 2% respectively. In the rest of the Mercosur countries, RevPar rose 14.4%.

The real state activity reported sales of €60.3m, 206.6% more than in the same period last year. Earnings growth in 2007 was explained by the impact of the sale of a plot in Puerto Morelos, Mexico.

EBITDA at the real state division reached €12.2m, an increase of 58.2% over the €7.7m reported in 2006. At 30 September 2007, firm sales not reflected in the accounts amounted to €76.7m, with an estimated margin of €26.8m. The majority of these sales were from the residential development of Ribera de Marlin and moorings in the Marina, both within the development in the province of Cadiz.

Important event in the third quarter

During the summer, NH Hoteles announced the signature of a five-year €650m syndicated loan, which refinanced the syndicated loan signed in June 2004 under more favourable terms and conditions. The loan cut the cost of this debt by 40 basis points, and lengthens the maturity. The new amortisation period of the loan is a better fit with the group''s expansion plans as the first repayment will be after three years, when NH Hoteles envisages completion of its current expansion plans. Altogether, the savings for NH Hoteles will be substantial, as while the previous syndicated loan was at a spread to Euribor of 1.1%, the new loan is at a spread of only 0.7%.

The following table sets out the performance of the NH Hoteles group to 30 September 2007:

SOBRE NH

NH Hoteles (www.nh-hotels.com) ranks third among European business hotels. NH Hoteles currently has 340 hotels with 49,491 rooms in 21 countries in Europe, America and Africa. NH Hoteles has at present 45 new projects for hotels under construction, which shall have 9,000 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 a responsible company in the Tourism industry. The Chain offer hotel services which anticipate present and future needs of both our internal and external stakeholders (Employees, Clients, Shareholders, Suppliers, Environment, etc.), the communities where we operate and future generations with maximum attention to detail and efficient and sustainable solutions.

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

Para más información:
Departamento de Comunicaci ón NH Hoteles
Tel: +34 91451 97 62
Tel : +34 91451 97 18 (centralita)
e-mail: comunicacion@nh-hotels.com

CENTRAL DE RESERVAS
Tel: 902 115 116 (Desde Espa ña)
Tel: +800 0115 0116 (Desde AUS, BE, FRA, ALE, IRL, HOL, ITA, PT, SU, RU)
Tel: +34 91 398 44 00 (Desde otros pa íses)
Web: http://www.nh-hotels.com