28 22. BANK LOANS BANK LOANS (thousand euros) Maturity dates Limit Available Draw down 2003 2004 2005 2006 2007 Remainder Total Mortgage loans 162,160.47 – 162,160.47 – 17,237.75 18,338.45 19,902.28 49,435.37 57,246.62 162,160.47 –    Variable interest 103,065.74 – 103,065.74 – 13,071.27 14,566.41 15,954.34 24,821.18 34,652.54 103,065.74 –    Fixed interest 59,094.73 – 59,094.73 – 4,166.48 3,772.04 3,947.94 24,614.19 22,594.08 59,094.73 Syndicated Mortgage Loans 171,283.02 – 171,283.02 – 16,449.53 16,449.53 16,449.53 16,449.53 105,484.90 171,283.02 –    Variable interest 66,917.26 – 66,917.26 – 6,416.45 6,416.45 6,416.45 6,416.45 41,251.46 66,917.26 –    Fixed interest 104,365.76 – 104,365.76 – 10,033.08 10,033.08 10,033.08 10,033.08 64,233.44 104,365.76 Syndicated Loan secured by Pledge 150,253.03 – 150,253.03 – 75,126.51 – – 75,126.52 – 150,253.03 Loans secured by collateral 56,189.38 – 56,189.38 – 7,729.19 5,467.19 5,973.15 6,372.60 30,647.25 56,189.38 –    Variable interest 46,113.67 – 46,113.67 – 6,623.81 4,365.45 4,869.05 5,268.12 24,987.24 46,113.67 –    Fixed interest 10,075.71 – 10,075.71 – 1,105.38 1,101.74 1,104.10 1,104.48 5,660.01 10,075.71 Credit lines 186,620.07 156,865.01 29,755.06 – 10,319.31 18,403.74 1,032.01 – – 29,755.06 –    Variable interest 186,620.07 156,865.01 29,755.06 – 10,319.31 18,403.74 1,032.01 – – 29,755.06 Interest debt – – 5,044.58 – 5,044.58 – – – – 5,044.58 DEBT SITUATION TO 31.12.03 726,505.97 156,865.01 574,685.54 – 131,906.87 58,658.91 43,356.97 147,384.02 193,378.77 574,685.54 DEBT  SITUATION TO 31.12.02 784,048.28 69,732.62 721,077.38 75,634.81 169,856.34 48,848.29 46,786.43 – 379,951.51 721,077.38 These loans are linked basically to EURIBOR and LIBOR plus a spread.

29 i) Set out below is an analysis of the syndicated and no syndicated mortgage loans (in thousand euros): MORTGAGE LOANS Balance as at 31.12.03 Net book value of asset Assets mortgaged Fixed interest Variable interest Total mortgaged NH Ciutat de Reus – 1,021.61 1,021.61 2,683.05 NH Luz de Huelva – 40.40 40.40 1,763.33 NH Málaga – 7,031.85 7,031.85 10,688.84 NH Calderón – 8,741.99 8,741.99 30,100.19 NH Calderón – 9,834.78 9,834.78 – Commercial Premises Hotel NH Eurobuilding – 179.06 179.06 1,127.35 NH Lagasca – 16,800.00 16,800.00 19,309.07 NH Príncipe de la Paz – 9,278.94 9,278.94 13,089.72 NH Alcalá 7,813.16 – 7,813.16 12,899.94 TOTAL SPAIN 7,813.16 52,928.63 60,741.79 91,661.49 NH Columbia – 1,046.58 1,046.58 9,177.14 TOTAL URUGUAY – 1,046.58 1,046.58 9,177.14 Hilton Guadalajara, NH Méjico City and NH Krystal Cancún (a) – 44,385.86 44,385.86 118,923.94 Hilton Monterrey – 1,969.17 1,969.17 6,675.37 Hilton Juarez – 1,551.71 1,551.71 5,913.26 TOTAL MEXICO – 47,906.74 47,906.74 131,512.57 NH Krasnapolsky, Restaurant D´vijff Vligen and Hotel Lord Charles South Africa    28,061.26 – 28,061.26 80,308.91 Hotel NH Jan Tabak 2,854.36 – 2,854.36 7,944.03 Syndicated loan to NH The Netherlands, B.V. (b) 104,365.76 66,917.27 171,283.03 381,335.99 TOTAL NETHERLANDS 135,281.38 66,917.27 202,198.65 469,588.93 NH Mechelen 1,016.12 – 1,016.12 2,455.37 NH Gent – 1,183.78 1,183.78 5,169.91 NH Genk 1,753.83 – 1,753.83 4,439.61 NH Docklands Antwerp 799.61 – 799.61 1,206.42 TOTAL BELGIUM 3,569.56 1,183.78 4,753.34 13,271.31 NH Regensburg 8,723.07 – 8,723.07 9,624.12 TOTAL GERMANY 8,723.07 – 8,723.07 9,624.12 NH Fribourg 8,073.32 – 8.073,32 7,579.51 TOTAL SWITZERLAND 8,073.32 – 8,073.32 7,579.51 TOTAL 163,460.49 169,983.00 333,443.49 732,415.07 (a) See note ii). (b) See note iii). ii)    The line "Variable interest rate loans secured by mortgages" includes a syndicated loan, for which the Banco Bilbao Argentaria  is  the  agent,  for  an  amount,  as  at  31  December  2003,  of  44.39  million  euros.  This  loan  was  granted  in December 2002 to Nacional Hispana de Hoteles, S.R.L. de C.V. The aim of the loan is to refinance the debt of that company with another financial institution, amounting to 72.4 million US dollars. The refinancing operation resulted in an 11.9 million euro reduction in the debt, recorded as extraordinary income on the Consolidated Profit and Loss Account in 2002 (see note 26d). The contribution to the net results of the Consolidated Group was 4.7 million euros.

30 This loan is being repaid in six-monthly, increasing instalments until the year 2007. The interest rate is linked to three-month LIBOR plus a spread that depends on the cover for the country risk. At  the beginning of 2004 the loan has been reduced by 20 million US dollars (see note 33). The  Syndicated  loan  granted  to  Nacional  Hispana  de  Hoteles,  S.R.L.  de  C.V.  has  been  secured  by  mortgages  on  the following properties (thousand euros): iii)   The line "Syndicated loans secured by mortgage" records a loan granted in August 1999 to NH The Netherlands, B.V. by fifteen European banks. As at 31 December 2003, 171.28 million euros were outstanding.  The interest rate charged in 2003 was three-month Euribor plus a spread. 72% of the principal of the aforementioned amounts have been hedged by several interest-rate swaps. These contracts expires in the year 2008. Also in connection with the hedge on the aforementioned syndicated loan, in 2001 the Controlling Company signed a contract with a financial institution for an amount outstanding, as at 31 December 2003, of 129 million euros, whereby the Company is guaranteed to receive a fixed rate of interest of between 5.505% and 4.010% (depending on the tranche) in exchange for paying a variable market rate of interest (3-month EURIBOR), provided that the 3-month LIBOR rate for the US dollar does not equal or exceed 6.08%, in which case, the Company shall pay, for every day this were to occur, a different variable rate of interest. The Syndicated Loan granted to NH The Netherlands B.V. has been secured by mortgages on the following properties (thousand euros): MÉXICO NH México City 26,612.25 NH Krystal Cancún 25,084.36 NH Hilton Guadalajara 67,227.33 SUBTOTAL MÉXICO 118,923.94 Net book value of mortgaged assets NETHERLANDS NH Zuid-Limburg 4,823.55 NH Geldrop 10,664.94 NH Schipol Airport 53,994.55 NH Zoetermeer 7,000.06 NH Barbizon Palace 52,694.75 NH Zandvoort 15,309.10 NH Rotterdam 14,302.34 NH Capelle 9,131.18 NH Naarden/NH Best 11,023.19 NH  Marquette 6,347.72 NH Amsterdam Center 47,686.79 NH Leeuwenhorst 40,843.06 NH Koningshof 41,786.40 NH City North 25,101.26 SUBTOTAL NETHERLANDS 340,708.89 BELGIUM NH Grand Place Arenberg 13,799.87 NH Stephanie 3,074.63 NH Brussels City Centre 20,984.31 NH Oostende 2,768.29 SUBTOTAL BELGIUM 40,627.10 TOTAL 381,335.99

31 The caption "Trade creditors" records the accounts payable as a result of the Group's normal trading activities. The line "Advances from trade debtors" includes mainly advance payments made by trade debtors of Sotogrande, S.A., amounting to 21.96 million euros (9.83 million euros as at 31 December 2002). The balance of "Deferred long-term tax" arises basically as a result of the deferral due to reinvesting capital gains generated on sales of hotels and companies. 24. TRADE CREDITORS Set out below is an analysis of "Trade creditors" as at 31 December 2003 and 2002 (thousand euros): iv) The line "Syndicated loans secured by pledge" includes a syndicated loan granted in November 2000 by 29 financial institutions, to be used to restructure the Group's debt, totalling 150.25 million euros. As at 31 December 2003, this loan had been drawn down in full.   This loan pays annual interest equal to three-month EURIBOR plus a spread. It will be repaid in 2 equal instalments each of 50% of the principal. The first repayment was made in February 2004 and the second  one  would  be  made  in  May  2007  when  the  loan  expires.    The  loan  is  secured  by  a  pledge  of  shares  in Sotogrande, S.A. representing 41.45% of its capital. v)    The line "Loans secured by mortgages" essentially includes a syndicated loan through Banco Bilbao Vizcaya Argentaria granted to NH Hoteles, S.A. for a maximum of 42.07 million euros, to be used to finance the acquisition, via a Takeover Bid, of Promociones Eurobuilding, S.A. (a company that was absorbed in 2002 by NH Hoteles, S.A.).  As at 31 December 2003, 34.43 million euros were still outstanding. The interest on this loan is charged at EURIBOR plus a spread and the loan will be repaid gradually starting in 2001 and ending in 2011. Some of the loans and credit lines included in this item require that certain financial ratios be met. As at 31 December 2003, none of these are in a position that is likely to trigger off a declaration of early termination by the lending entities. The Controlling Company has signed some contracts for interest coverage ("collar"), for a total of 103 million euros, which ensure the maximum interest rate that the Company shall pay unless the interest rate falls below a minimum level. These contracts expire in 2006. 30.36% of the gross debt of the NH Hoteles Group has been hedged, in one way or another, against major changes in interest rates. The percentage of net debt (Gross Debt - Cash and Banks - Shares in the Controlling Company held for the short term - Current-asset investments) is 36.61%. 23. OTHER LONG-TERM CREDITORS Set out below is an analysis of the balance of "other long-term creditors" (thousand euros): OTHER LONG-TERM CREDITORS 2003 2002 Long-term guarantee deposits received 562.81 88.00 Long-term deferred tax 77,561.63 90,240.43 78,124.44 90,328.43 TRADE CREDITORS 2003 2002 Trade creditors 91,344.30 70,644.89 Advance payments 29,992.43 16,966.02 Other creditors 2,604.73 3,439.92 123,941.46 91,050.85

32 25. OTHER CREDITORS Set out below is an analysis of this item as at 31 December 2003 and 2002 (thousand euros): OTHER CREDITORS 2003 2002 TAXES AND SOCIAL SECURITY CONTRIBUTIONS Deferred tax 3,566.46 3,432.13 Corporation tax 17,656.36 13,353.17 VAT 4,122.53 3,215.62 Personal income tax 4,063.52 4,232.13 Tax on income from capital 61.96 321.24 Social Security contributions 3,758.56 4,084.01 Other taxes 2,045.86 5,570.14 OTHER CREDITORS Creditors for investments 8,977.62 8,466.99 Purchase of rights of beneficial use (see note 7) 1,495.05 1,495.05 Purchase  49% holding in AHORA, S.L. – 52,458.05 Panorama Hotel, S.A. shareholders 2,721.24 – Sundry creditors 26,677.66 40,710.57 75,146.82 137,339.10 26. INCOME A) SALES Set  out  below  is  an  analysis  of  the  turnover  of  the  Group  according  to  activities  as  at  31  December  2003  and  2002 (thousand euros): SALES 2003 2002 Room accommodation 528,396.51 515,766.27 Catering 243,049.80 218,430.16 Meeting rooms and other 47,526.21 31,838.86 Property 55,792.67 59,743.00 Golf and sports clubs 6,573.76 4,597.43 Rents and other services 40,225.10 55,789.14 921,564.05 886,164.86

33 Thousand euros Spain 424,463.84 Benelux and Switzerland 240,352.48 Germany 172,793.86 Austria 20,312.33 Mexico 45,503.92 Argentina 8,404.07 Chile 2,363.94 Uruguay 888.78 Brazil 1,149.38 South Africa 4,924.39 Hungary 407.06 921,564.05 Set out below is an analysis of net turnover for different geographical markets for 2003: B) PROFIT ON DISPOSALS OF FIXED ASSETS In 2002 a sale and lease-back agreement with a twenty-year term was reached, with no buy-back agreement, for the hotels NH Abascal, NH Iruña Park and NH Pirineos and the sale of the hotels NH Bretón and NH Delta, all for a total of 79.81 million euros and a pre-tax capital gain of 18.69 million euros. As at 31 December 2003, this line records the capital gain made on the sale of the Hotel NH Pedralbes and the Hotel NH Sant Angelo, totalling 6.84 million euros. C) PROFITS ON THE SALE OF CONSOLIDATED COMPANIES In 2003 this caption records the capital gain on the sale of the shares in Hotel Princesa Sofía, S.L. D) EXTRAORDINARY INCOME In 2002, this caption recorded, inter alia, the gain on refinancing a 11.9 million euro loan at Nacional Hispana Hoteles, S.R.L. de C.V. (see note 22ii), and the income from reversing provisions linked to this loan amounting to 5.9 million euros. In 2003 this caption essentially records 19.93 million euros coming from the capital gain made on the operation with the Caja Madrid Group (see note 3). 27. EXPENSES A) PERSONNEL EXPENSES Set out below is an analysis of staff costs (thousand euros): PERSONNEL EXPENSES 2003 2002 Wages, salaries and similar 232,583.61 204,330.18 Social Security contributions 55,988.42 54,566.46 Other social charges 14,477.23 25,734.86 303,049.26 284,631.50

34 The average number of employees in the Controlling Company and the companies that have been fully consolidated in 2003 and 2002, divided into categories, is as follows: AVERAGE NUMBER OF EMPLOYEES 2003 2002 General management of the Group 7 6 Managers and Heads of Department 540 490 Technicians 556 474 Sales staff 464 407 Administrative staff 675 576 Other Staff 11,876 8,559 AVERAGE NUMBER OF EMPLOYEES 14,118 10,512 Although the average full time employees amounted to 11,038 in the year 2003 compared to 11,222 in the year 2002. The item "Staff costs" includes the fixed and variable remuneration, linked to the performance of the Consolidated Group, of  the  management  team  of  NH  Hoteles,  S.A.,  which  represent,  respectively,  0.95%  (0.88%  in  2002)  of  total  wages  and salaries.  The  above  percentage  includes  the  fixed  and  variable  remuneration  paid  to  Directors  of  the  Company  which represent, in turn, 0.35 percent of the aforementioned percentage (0.33 percent in 2002). B) OTHER OPERATING CHARGES The fees for the statutory audits of the different companies in the NH Hoteles Group during 2003 amounted to 1.29 million euros, and are recorded under the caption "Other operating charges" (1.18 million euros as at 31 December 2002). Furthermore, the fees for other professional services provided to the NH Hoteles Group by the different auditors of the company amounted, in 2003, to 0.42 million euros (1.16 million euros as at 31 December 2003). C) LOSS ON DISPOSAL OF FIXED ASSETS As at 31 December 2002, this caption essentially recorded the result amounting to 1.09 million euros made on the sale of the hotel NH Villa de Bilbao, which has subsequently been leased for a 20-year term. In 2003 this caption includes 1.77 million euros for capital losses on the sale of the hotels Lord Charles (South Africa), Hotel Champery (Switzerland), a piece of land at the Hotel Stephanie (Belgium) and 2.01 million euros for disposals of assets of the Marina La Torre Golf Course. D) EXTRAORDINARY EXPENSES AND LOSSES In 2002, this section recorded 6.9 million euros for the provision to meet the commitments entered into by the Group under the first Share Option Plan (see note 30 ii). The balance as at 31 December 2003 includes 39.35 million euros as the effect in the accompanying Consolidated Profit and Loss Account set up to cover the exposure to the economic situation in Germany and Austria. This section also records the severance payments made to staff by the Group, which totaled 6.3 million euros (2.4 million euros in 2002).