1 9 DEVELOPMENTS IN 2003 NEW OWNERSHIP STRUCTURE 10 SHAREHOLDERS AND FINANCIAL INFORMATION    10 2003 RESULTS 11 2003-2004 STRATEGIC PLAN 13 01 DEVELOPMENTS IN 2003

10 PONTEGADEA INCREASES ITS HOLDING In  July  2003,  through  his  holding  company  Pontegadea, Amancio Ortega increased his stake from 5% to 10%. This evidences his strong support for NH Hoteles and he is now the largest shareholder. CAIXANOVA AND CAJAMURCIA ACQUIRE STAKES IN NH HOTELES In November 2003, Hoteles Participados S.L, 50/50 owned by credit institutions Caixanova and Cajamurcia, acquired a 5% stake in NH Hoteles. Accordingly, Hoteles Participados is now a core shareholder. The  Investor  Relations  Department  provides  information  for shareholders on NH Hoteles' strategy and gives feedback to the company on shareholder preferences. Shareholders can contact NH Hoteles by calling the shareholder hotline (+34 91 451   9724)   or   by   e-mailing   investor.relations@nh-hotels.com. Shareholders can also access all relevant information via the corporate website (www.nh-hotels.com). In addition to serving shareholders, the department is also responsible for: • Maintaining a stable shareholder base • Contributing to the correct valuation of the share • Generating   market   trust,   by   making   the   Company   the primary source of information • Informing NH Hoteles management of investors' views The Investor Relations Department stepped up its activity in 2003 and worked closely with the management team, not just to   explain   to   shareholders   the   company's   strategy   and managers' stance with regard to the takeover bid but also to listen to and incorporate shareholder suggestions. This effort to communicate with and listen to shareholders involved 5 road shows in Europe and the US, more than 179 meetings with fund managers, 41 with analysts, 3 conference calls to the financial  market  and  27  presentations.  The  company  also participated in seven conferences. There are currently 32 financial analysts providing ongoing coverage on the company and NH Hoteles is included in the most-widely   distributed   sectoral   reports   in   the   financial market. Hoteles Participados 5% Pontegadea 10% Free Float  65% NH HOTELES OWNERSHIP STRUCTURE (March 2004) C.F. Caja Madrid 5% FINAF 92 5% Management team  5% Bancaja 5% NEW OWNERSHIP STRUCTURE SHAREHOLDERS AND FINANCIAL INFORMATION NH Inglaterra | Granada (Spain) NH Amsterdam Centre | Amsterdam (The Netherlands)

11 NH Hoteles earned a total of 50.86 million euros in 2003, after registering sales levels similar to 2002 (927.34 million euros). The company decided to use a large part of the extraordinary gains from property sales to accelerate amortisation of the goodwill (40 million euros) generated on the acquisition of Astron. EBITDA stood at 155.3 million euros, confirming the upward trend in 4Q03, since EBITDA fell 30.5% in 2003 as a whole, compared to a drop of 33.2% in the first nine months of the year. The achievement of these objectives has enabled NH Hoteles to reduce debt by 28%, from 667 million euros to 478 million euros, placing it among the most financially solid companies in the sector worldwide. The company made a considerable effort to reduce costs, leading to a 6.1% reduction in operating costs per available room. Considerable  progress  was  made  in  cost-cutting,  another strategic objective. While the average number of rooms rose 14.3% on 2002, the average number of employees rose by just 6.9%. The  hotel  business  contributed  revenues  of  870.5  million euros, up 0.4% on 2002. Sales in Europe increased by 0.9% to 805   million   euros.   The   German   business   registered   the poorest performance: like-for-like sales fell 12.4%. In Latin America, the hotel business performed very positively. Revenues  in  local  currency  rose  64%  in  Argentina,  46%  in Brazil and 12.7% in Chile. Revenues in Mexico grew 0.8% in local currency terms. The decline in EBITDA was due mainly to the reduction in the average price per room. EBITDA fell 22.3% in comparable hotels in Europe but grew 8.7% in Latin America. Sotogrande   also   performed   well:   56.88   million   euros   in revenues from booked property sales and a record number of committed sales yet to be booked worth 70.2 million euros, with a margin of 42.2 million euros. On 31 December 2002, sales not yet booked amounted to 34.8 million euros, with a margin of 15.9 million euros. The contribution to group EBITDA from the Sotogrande real estate business amounted to 31.56 million euros. 2003 RESULTS NH Ciudad de Almería | Almería (Spain)

12 FY 2003 FY 2002 03/02 NH HOTELES GROUP (millions of euros) (millions of euros) Change Room revenues 515.74 510.11 1.1% Food service revenues 270.33 266.97 1.3% Other revenues 84.39 89.59 (5.8%) Property sales and other revenues 56.88 63.44 (10.3%) TOTAL REVENUES 927.34 930.11 (0.3%) Real estate costs (15.39) (20.22) (23.9%) Direct management expenses (602.37) (564.98) 6.2% MANAGEMENT PROFIT 309.57 344.91 (10.2%) Leases and property taxes (154.24) (121.32) 27.1% EBITDA 155.33 223.59 (30.5%) Amortisation and depreciation (79.44) (75.04) 5.9% Write-down of Sotogrande consolidation difference (2.60) (3.43) (24.2%) EBIT 73.30 145.12 (49.5%) Financial result (29.94) (35.06) (14.6%) Equity-accounted affiliates 0.83 (2.90) (128.7%) Extraordinary results 28.36 27.93 1.6% EBT 72.55 135.09 (46.3%) Corporate income tax (16.92) (28.32) (40.3%) PROFIT before minority interests 55.63 106.77 (47.9%) Minority interests (4.78) (21.11) (77.4%) NET PROFIT 50.86 85.66 (40.6%) Average number of shares 119,532,898 119,532,898 NH HOTELES 2003 RESULTS: KEY FIGURES Source: Morgan Stanley and NH Hoteles FINANCIAL STRUCTURE - DEC. 2003 0.0 10 40 80 90 70 60 50 30 20 *  Financial leverage defined as Net Debt/Market Capitalisation (%) 84.7 45.2 42 36.2 33.7 22.5 NET BANK DEBT/EQUITY 0 2000 2001 2002 2003 0.5 1 1.25 0,75 0,25 1.03 1.09 0.81 0.56

13 NH Príncipe de la Paz | Aranjuez - Madrid (Spain) NH  Hoteles'  2003-2004  strategic  plan  involves  a  number  of actions aimed at further consolidating the company's financial situation   and   remunerating   shareholders.   Specifically,   NH Hoteles projects cost savings totalling 30 million euros from 2005   onwards.   The   company   already   achieved   significant savings in 2003, increasing the average number of rooms by 14.3% while the average number of employees rose just 6.9%. Accordingly, the employee/room ratio fell by 6.4% in the year to 0.36. Another of NH Hoteles' commitments in 2003 was to freeze large development projects, like those undertaken in recent years, instead limiting investment to developing and opening hotels for which it already had signed contracts. Thirdly, one of the most important strategic decisions taken in 2002 and 2003 was to optimise the chain's hotel portfolio. In 2003,  NH  Hoteles  proposed  the  sale  of  assets  worth  182 million  euros  which  no  longer  conformed  to  the  company's high   standards.   This   figure   was   amply   exceeded   as   NH Hoteles  obtained  more  than  200  million  euros  in  2003  and 2004 (to date). NH  Hoteles  also  decided  to  accelerate  the  sales  process  at Sotogrande; as a result, it considerably increasing committed sales. Following the successful implementation of these actions, the company's net debt fell 28% to 478 million euros. Furthermore, NH Hoteles has decided to propose a dividend of  0.25  euros/share  to  the  Shareholders'  Meeting,  breaking the trend of recent years. The amount of the dividend is in line with that offered by the majority of companies in the Ibex-35 and, if approved, it will be paid following the Shareholders' Meeting. In  2004,  the  company  will  continue  to  focus  on  cost-cutting and on optimisation of the hotel portfolio through the sale of some additional assets. NH Hoteles is keeping a close eye on the Italian market in order to seize any profitable opportunities which may arise. Italy offers great potential to a company like NH Hoteles as its hotel sector is   highly   fragmented.   NH   Hoteles   also   plans   to   continue expansion   in   Mexico   and   it   is   currently   studying   various opportunities  there  in  addition  to  the  management  contracts signed with three hotels (two in Mexico City and one in Puebla) in recent months. 2003-2004 STRATEGIC PLAN

14 That's what makes NH Hoteles employees stand out from the rest. Efficient service and a friendly atmosphere. That's how we are and how we work. Find out for yourself at any of the 240 NH hotels in 16 countries. 902 115 116 / www.nh-hotels.com We make our mark as people. We make our mark as professionals.