4 The NH Hoteles Group (www.nh-hotels.com) now ranks third among Europe's business hotel groups. At the end of March 2004, NH Hoteles had 239 hotels in operation, with 34,458 rooms, in 16 countries in Europe, Latin America and Africa, and 25 hotels under construction, which will add 3,598 new rooms. Following a phase of major acquisitions, NH Hoteles focused firmly on assimilating and adapting to its new position in 2003; considerable operating savings were identified and achieved, and     the     hotel     portfolio     was     streamlined,     divesting establishments that did not conform to NH Hoteles' concept and service. The company culminated the process of unifying the brand in all the countries where it operates. NH hotels stand out because of the quality of their services and facilities, which are decorated to a uniform high standard to appeal to all tastes and make customers feel at home. They have the most advanced technology to enable customers to communicate, work and relax. During the year, the company implemented a combined back/front office system to enable it to manage and consolidate results much more efficiently, optimize  sales  force  efforts  and  offer  a  better  customer service. Early in March 2003, NH Hoteles inaugurated its first "nhube", a  pioneering  experience  in  the  hotel  industry  which  was conceived for the NH chain by prestigious restaurateur Ferran Adriá, founder of El Bulli. In March 2004, the second nhube was inaugurated in the recently-opened NH Cartagena hotel. A further 25 nhube facilities are under construction. INTRODUCTION NH Palacio de Ferrera | Avilés (Spain)
5 NH Hoteles also opened its first "FastGood" facility, another pioneering initiative of Ferran Adrià that will revolutionize the concept of fast yet healthy food. NH Hoteles' ownership structure has varied considerably in recent  months:  Amancio  Ortega,  through  his  investment company Pontegadea, increased his stake from 5% to 10%, and  Caixanova  and  Caja  Murcia  created  the  50:50  joint venture  Hoteles  Participados,  which  acquired  5%  in  NH Hoteles. In 2003, NH Hoteles was the target of a tender offer for part of   the   capital,   which   was   rejected   by   the   majority   of shareholders. Following the restructuring of the Sotogrande business at the end of 2002, which included the acquisition of a 17.3% stake by Caja Madrid, NH Hoteles now owns 79% of Sotogrande. Sotogrande's real estate business is performing well: after the launch of La Reserva, Sotogrande achieved record pre-sales of more than 70 million euros. NH Hoteles also owns 21% of the Jolly Hotels chain (Italy) and 5% of the Warner Bros. theme park in Madrid. NH Hoteles is listed on the Stock Exchanges of Madrid (it is included in the Ibex-35 index) and Amsterdam (Euronext). NH Hoteles is also one of the EuroStoxx 600 companies, which includes Europe's leading companies, and it forms part of the prestigious   Morgan   Stanley   Capital   International   (MSCI) indexes. The company is also traded on the New York Stock Exchange in the form of level 1 American Depository Receipts (ADR). On 31 March 2004, the NH Hoteles Group had over 12,500 employees of 99 different nationalities. NH Frankfurt-City | Frankfurt (Germany)