EIP is now a shareholder of NH

[31/05/2006]

COMISION NACIONAL
DEL MERCADO DE VALORES
Pº de la Castellana 19
28046 MADRID

Att.: D. Antonio Mas




Dear Sirs

In fulfilment of the duty of information established in Section 82 of Securities Markets Law and in order to supplement the information relating to the resolutions adopted by the Ordinary General Meeting of Shareholders of NH HOTELES, S.A. held at the second call on 5th May 2006, we are pleased to inform you that:

In connection with the eighth resolution of the Ordinary General Meeting of Shareholders relating to the capital increase, with exclusion of the preferential subscription right, in the amount of 57,375,000 euros, through the issue of 4,250,000 NH Hoteles shares, to be subscribed entirely by Equity International Properties, Ltd (EIP), the consideration for which consists of the non-monetary contribution of the 1,162,439 shares of Latinoamericana de Gestión Hotelera, S.A. (the “capital increase”) and pursuant thereto, EIP (through its subsidiary Spitfire Serviços e Marketing Sociedade Unipessoal lda) has subscribed and paid up the total of the 4,250,000 new shares of NH Hoteles, S.A. This capital increase was registered in the Mercantile Register of Madrid on 25th May 2006.

As a consequence of this capital increase, EIP is now a shareholder of NH Hoteles, S.A. with a 3.43343% stake in its corporate capital made up of 123,782,898 shares.

With the completion of this capital increase, NH Hoteles now holds 100% of the shares of Latinoamericana de Gestión Hotelera, S.A., which is the head company of all the NH Hoteles investments in countries such as Mexico, Argentina, Brazil and Chile.

By virtue of the resolution of the General Meeting of Shareholders, the Company has applied for the listing of the NH Hoteles shares issued after the capital increase.

Yours faithfully,