NH Hoteles Consolidates Presence in America With NH Bogota 93 In Colombia

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. October 17, 2011

Madrid - October 14, 2011 - NH Hoteles, one of the twenty largest hotel companies in the world and leader in its sector in Europe, has landed officially in Colombia with the inauguration of NH Bogotá 93, located in the capital.

Speaking at the opening ceremony, Mariano Perez Claver, Chairman of NH Hoteles, explained the Group's strategic targeting of this market by stating that “unlike other economic cycles, the Americas seem to be immune to the negative effects of this one, which are affecting Western economies”. Perez Claver stressed that “all of the countries where we operate on this continent are experiencing continuous growth with excellent results”. Referring to the Colombian market, he indicated that opening the first NH in Bogota is a response to hotel demand in one of the most important financial centres in America. “Colombia is also hugely appealing for tourists due to its cultural diversity and we therefore plan to expand our business to its main cities”, stressed the NH Hoteles Chairman.

NH Bogotá 93, owned by the Company, will be its flagship hotel in Colombia, as it already has a solid operational base which is at an advanced phase of negotiation to open new hotels under management contracts, a low capital intensive format. The Company plans to open 5 hotels in the medium term that will be added to its portfolio under this format.

NH Hoteles enjoys an outstanding reputation and has been well received in the countries in which it operates on the American continent. It currently has around 7,000 rooms in 8 countries (Argentina, Chile, Colombia, the United States, Mexico, the Dominican Republic, Uruguay and Venezuela) and has won many awards for its main business activities. Of note recently was the Latin American Prize for Corporate Responsibility within the framework of the Open Programme for Social and Civic Responsibility, organised by the Ecumenical Forum. This award recognises the environmental and social initiatives that the Company has implemented in the countries where it operates, such as the Youth Career Initiative, in which NH Hoteles is heavily involved with in Mexico with youngsters at risk of exclusion.

The Group's prestige also extends beyond the continent's borders with recognitions such as the certificate for one of the best companies to work for in the main countries where it operates, awarded by the Corporate Research Foundation (CRF) which independently evaluates thousands of companies throughout the world each year. In addition, the quality of the Group's services and products were recognised for their care with awards such as the prize for the best customer experience 2010, granted by the Spanish Association of Experts in Customer Contact Centres (AEECCC), and the prestigious European Hotel Design Award, that recognises the work that goes into designing hotels. This and other recognitions mean that for the sixth year running NH Hoteles has been recognised as the company with the best corporate reputation in the tourism sector, according to the Corporate Reputation Business Monitor (MERCO) for Spain.

With its commitment to culture, NH Hoteles is particularly proud to have the support of the celebrated winner of the Nobel Prize for Literature, Mario Vargas Llosa, who has given his name to the short story competition that the Company has held over the last few years with the 14th edition due to take place next year.

NH Hoteles is one of the leading hotel chains in its segment in Europe, where it currently operates 400 hotels with around 60,000 rooms and is present in 25 countries in Europe, America and Africa. The Company is characterised by the vocation of its more than 17,000 employees to service and the constant innovation towards its 16 million customers. NH Hoteles establishments have the most advanced technologies to facilitate communication as well as work and entertainment for its customers. Equally, catering is a priority for NH hoteles, offering customers first class cuisine.

Growth strategy

NH Hoteles is basing its present worldwide strategy on improving the efficiency of all its processes, in strengthening its commercial structures and developing growth through low risk formats, such as incorporating managed assets.

To implement its current plans, NH Hoteles recently announced a change in its organisational structure aimed at aligning this to the Group's medium-term strategic objectives. Thus, the Company recently launched an efficiency improvement plan, consistent with the fluctuating world economic climate, through which it expects to reduce costs by 10% over the next two years. Amongst the initiatives that stand out and illustrate the responsibility of employees towards current cost containment plans it is worth mentioning that the Company's management team recently made an austerity commitment with the Group with a voluntary reduction in fixed salaries and other social benefits ranging from between 5% and 10% for the former and between 10% and 40% for the latter.

The new organisation has allowed for a commercial strengthening of the Group, and provided it with new technological capacities to manage price and occupancy levels as well as management teams focused on the development of its online business and a denser distribution network.

The growth strategy for the Group's hotel base, based principally on low capital intensive formats has already started to bear fruit. Out of a total number of 21 planned new hotel openings with 2,418 rooms worldwide, NH Hoteles currently has a portfolio of projects based on this new philosophy representing 40% of the total of the new openings. And it is estimated that around 5 new hotels in Colombia could be added to the Group's portfolio of projects under this system in the medium term. Additionally, NH Hoteles is looking into the possibility of entering Brazil under the same format, a market with significant potential for the Group and where it currently does not have a presence, with the aim of opening between 10 and 15 hotels over the next five years. Finally, the Company will continue to consolidate its position in other markets on the continent through the same formula.

Within the framework of a policy aimed at providing the Company with liquidity and reducing its debt, last week NH Hoteles sold the stake that it still held in the Lotti hotel in Paris, and which will now be placed in the Group's portfolio of managed hotels for the next two years, thanks to the commercial alliance signed by the buyer of the establishment. With the sale of Hotel Lotti, NH Hoteles has exceeded by 15% the objectives initially established in its 2009 divestment plan.

NH Bogotá 93

The hotel is situated a few metres from the Parque de la 93, the cultural, leisure and gastronomical heart of the Colombian capital. The 4 star establishment has 137 rooms over 8 floors, including 3 junior suites. With an avant-garde design, all areas of the hotel have been designed to be functional and comfortable. All rooms have Wi-Fi internet connection, 37” LCD television sets, cable TV and minibars. In addition, the establishment has a restaurant for lunch and dinner, a business centre, gym, terrace, private parking and 4 function rooms with the capacity to hold up to 120 people. Finally, it offers room service, a breakfast buffet, breakfast for early risers and a laundry service, amongst other services.