NH Budapest (Hungary) Once the integration and cost-cutting measures have been accomplished, and the company debt reduced, NH Hoteles is ready to continue growing in order to maintain its leadership position. The company is now looking for profitable growth in markets where it is already present, as well as in new markets. The chain can be expanded via a piecemeal approach, which involves incorporating individual hotels, or through incorporating small hotel chains. The expansion team is currently in the process of studying several projects in different markets. A PAN-EUROPEAN PROJECT: In Europe, NH Hoteles aims to improve its leadership position in city hotels by applying two expansion models: - A first model that is applied to markets or economies where there are different areas of interest to NH Hoteles within the same country. This is the approach in markets like Spain, Italy, Germany and the Netherlands. - A second model implemented in countries where there have hitherto only been one or two main regions of interest to the company, which is the case of Romania and Hungary, etc. Specifically, expansion policies are concentrated on: SPAIN: Considering that the company has now covered practically the entire country, NH Hoteles hopes to take advantage of any opportunities that may arise and strengthen its presence in locations where market share is still low. GERMANY AND THE BENELUX: The chain plans to strengthen its presence in these markets, especially in Germany where it intends to increase its market share. NH Hoteles ranks third among city hotel chains in Germany and first in the Netherlands. EXPANSION 6 37 Europe and Latin America are two key markets for expansion and NH Hoteles aims to improve its leading position in Europe and continue growing in Latin America and Mercosur < NH Laguna Palace - Mestre - Venice (Italy)

EASTERN EUROPE: With regard to the Eastern European countries, NH Hoteles aims to achieve market share that is suited to its needs in the most attractive destinations. The chain has already signed contracts for two hotels in Romania and has one hotel in operation in Hungary. PORTUGAL: NH Hoteles aims to strengthen its market share in Portugal with a greater presence in Lisbon. ITALY: Here the company is implementing two growth strategies: piecemeal and corporate. Piecemeal growth means acquiring hotels one by one. NH Hoteles already operates one hotel and a convention centre in Italy, the NH Laguna Palace. In addition, the company wants to grow in Milan, where it has already signed a hotel, and in other cities in this manner. On the other hand, corporate growth will also be achieved through signing agreements with other companies in the form of mergers or acquisitions. The Italian hotel market is highly fragmented, a mere 5% of hotels are in the hands of hotel chains, which favours NH Hoteles’ entry into the Italian market. Moreover, the company’s uniform and quality product, coupled with 26 years of experience in a global sales network, are a necessity for the Italian market. NH Hoteles first entered Italy in the Venice region, one of the most important hotel markets in the world. Here it operates a spectacular hotel complex comprised of the NH Laguna Palace and a convention centre that is strategically located in Mestre’s fastest developing area. 38 NH Laguna Palace convention centre - Mestre - Venice (Italy) Mexico Brazil Argentina Uruguay Chile Cuba South Africa Ghana Portugal Spain Italy Romania The Netherlands Germany Hungary Belgium Austria Switzerland England

39 The 384-room hotel is an example of spectacular modern architecture and consists of two buildings that are joined by an impressive glass roof and separated by a canal, which is a marina for mooring 400 boats. The NH Laguna Gallery convention centre, the largest in the area with a capacity for 1,200 persons and equipped with cutting edge technology, is located within the complex. One of NH Laguna Palace’s main attractions is, undoubtedly, its proximity to the centre of Venice, which can be reached in a few minutes. The company is planning opening a hotel in Milan, in addition to a luxury complex in Sicily, the Donnafugata, which will consist of a hotel, convention centre, spa and two golf courses. Along with the projects it is already considering, the company plans to have over one thousand rooms in Italy within two years. On March 29^th, 2005, a contract was signed to add the Harrington Hall hotel in London. LATIN AMERICA: In an environment of economic recovery, NH Hoteles expects to continue growing in Mexico and Mercosur, two markets where it already enjoys a strong presence. The company aims to double the number of rooms in Mexico, Brazil and Argentina over the coming four years. Signed projects to be undertaken in Mexico represent direct investment of almost €8 million and total estimated investment of over €31 million and are as follows: - NH Puebla: is located in the heart of the city’s historical centre and will have 128 rooms and 250 sqm of meeting space. It was opened in March 2005. - NH Centro Histórico, Mexico City: located just a few metres from the plaza del Zócalo, one of the largest squares in the world, the hotel will offer 107 rooms and 230 sqm of meeting and events space. It is expected to open in May 2005. - Hotel NH Santa Fe, Mexico City: : will have 135 rooms and the opening is planned for September 2006. NH Krystal - Cancun (Mexico)

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