Press room

Madrid February 27, 2008

NH HOTELES NET 2007 PROFIT UP BY 24% OVER THE PREVIOUS YEAR

• Group revenues totalled €1,505M, EBITDA increased by 50% to €283M, and net earnings rose to €77.4M

• Hotel business earnings increased 40%, to €1,427M, and hotel EBITDA grew by 60%, to €258M

• The Revpar (revenue per available room) posted an increase of 6% in Europe, due to an average price rise of 7%.

• Earnings and EBITDA were up across the board due to the stable price increases in all Business Units

• Sotogrande earnings rose by 13% on 2006 to €78.6M and pending sales still to be accounted stood at €77.6M, with a margin of €27.8M.

The net consolidated earnings of the NH Hoteles Group grew strongly in 2007 to €77,4M, 24% up on 2006. This was due to a 38% increase in revenues, to €1,505M. The Company's EBITDA (operating profit) improved to €283M, a 50% increase on 2006.

A solid 2007 European market fuelled a 40% increase in hotel business earnings to €1,427m. The earnings total reflected the geographically diversified revenue streams that have underpinned the Group’s growth in recent years. The table below shows the weighting of NH Hoteles’ sales has grown in different European countries:

The 2007 hotel business EBITDA consolidated the results of the Italian incorporations last year (Jolly Hotels and Framon) and increased by 60% to €258m.

"These results demonstrate the great strength of the Group and the potential of a growth model based on diversifying geographically and standardising the excellent services of our brand. All the units of NH Hoteles delivered a strong, sustainable growth that was very much in line with our expansion plan," said Gabriele Burgio, the CEO of NH Hoteles.

The revenue growth was due to new incorporations to the Group and to a 6% Revpar (revenue per available room) increase. The Revpar growth was essentially due to a 7% ADR (average price) increase in Europe, in particular in the Germany, Benelux and Switzerland, Austria and Hungary business units.

Growth in all the Business Units

A feature of the 2007 results was the strong revenue and EBITDA performance across the board of the Group's business units.

The Group’s strong, sustainable growth was based on the quality that distinguishes the standardised and innovative services and facilities of its hotels NH Hoteles pays the utmost attention to details and to the comfort of its guests. The group’s hotels are situated in the very best locations, provide state-of-the-art communications technology to business clients and offer meticulous, top-quality restaurant services.

In Germany Revpar increased by 11% in the fourth quarter, confirming the country’s positive trend and overcoming the complicated comparison posted by this business unit at the nine month stage due to the 2006 World Cup.

The Revpar in the Benelux was up by 6% compared to the previous year. The Revpar of this business unit grew strongly in the fourth quarter, due to robust revenues in cities such as Brussels and Amsterdam. The revenues recorded in the Benelux, excluding new incorporations, totalled €297M, 8% up on 2007.

Spain performed strongly. Revenues rose 6% (excluding incorporations) due to increased business in major Spanish cities and particularly in Barcelona. The price-driven Revpar increase and improved efficiency raised EBITDA in Spain by 15% year on year.

In 2007, the Switzerland, Austria, Hungary and Romania business unit posted an 8% in increase in revenues and EBITDA totalled €2.9M (excluding new openings). This result highlighted the stability that recent incorporations in Central and Eastern Europe have brought to the portfolio of NH Hoteles. The hotels recorded an 8% increase in Revpar, basically due to an 8% rise in average prices. The city of Vienna performed particularly well in the fourth quarter of last year.

Revenues in Latin America totalled €69,4M and EBITDA (not including the new openings) grew by 8%, in spite of the adverse trend in the exchange rate. The Revpar increased by 2.8%, due to a rise in the ADR.

Sotogrande recorded sales of €78,6M, 13% up on the previous year, and an EBITDA of €24,2M. As at 31 December 2006, confirmed sales yet to be recorded in the accounts totalled €77,6M with a margin of €27,8M. Most of these sales will be recorded in the accounts at the end of 2008 and relate to the property development Ribera del Marlín and the moorings of La Marina.

The table below provides the main figures for the NH Hoteles Group as at 31 December 2007 and for 2006:



Additions to the portfolio of hotels in 2007

Expansion

In 2008 NH Hoteles has topped the 50,000 rooms total and gained a presence in 22 countries. Last year NH Hoteles significantly increased the geographical distribution of its activities, by adding 72 hotels with nearly 11,000 rooms to the Group. A large part of this growth was due to the acquisition in early 2007 of the Italian hotel chains Jolly Hotels and Framon:

• From Jolly Hotels: 46 Hotels (7,555 rooms) from Jolly Hotels:

5,993 rooms (39 hotels) in Italy, a 275-room hotel in London, a 218-room hotel in Amsterdam, two hotels (472 rooms) in Germany, a 162-room hotel in Paris and a 242-room hotel in New York.

• From Framon: 15 hotels with 1,254 rooms in Italy.

• Natural growth: 13 hotels with 2,239 rooms in major European cities.

Noteworthy new hotels in 2007 included the NH Constanza, a 308 room convention hotel in Barcelona’s L’illa district which strengthened the Group's presence in the city; the 252-room NH Danube City in Vienna, a booming business and tourism city where NH Hoteles already operates 5 hotels and over 1,000 rooms; a business hotel in the centre of Nice; the acquisition and incorporation to the NH Hotels brand of two Sofitel hotels in Bruges and Ghent.

Developments in the Growth Plan (18,000 rooms 2007-2009)

• As at 31 December 2007, 6,065 rooms had been added to the Group, in line with the growth plan. The plan aims to add a further 6,000 in 2008 and 6,000 more in 2009, to reach the target of 18,000 rooms in three years.

• Geographical distribution in the early months of the Expansion plan:

Central and Eastern Europe: 60% (Germany, Netherlands, Switzerland, Austria, Czech Republic and France).

Southern Europe: 29% (Italy and Spain).

Latin America and other: 11%

ABOUT NH HOTELES

NH Hoteles (www.nh-hoteles.com) ranks third among European business hotels. NH Hoteles currently has 343 hotels with 50,518 rooms in 22 countries in Europe, America and Africa. NH Hoteles has at present 47 new projects for hotels under construction, which will provide almost 9,000 new rooms.

NH Hoteles stand for design-driven quality services and facilities, intended to please all tastes and ensure overall comfort. The Groups hotels provide the most advanced communications technologies for the business and leisure purposes of their guests.

The Goup’s restaurants offer first-rate cuisine. The renowned restaurateur Ferran Adrià, creator of El Bulli restaurant, has entered into an association with NH Hoteles, to launch new concepts such as "nhube", pioneering spaces in the hotel sector that combine food, leisure and rest for guests, and the "Fast Good" restaurants for wholesome and healthy eating.

NH Hoteles is a socially and environmentally responsible company that adheres to the best code of good governance conduct. It is responsible to the communities where its hotels are located, to its clients, to its stakeholders and to its shareholders and, by striving to achieve sustainable operating standards and practises, to future generations.

NH Hoteles is listed on the Stock Exchange of Madrid.

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