Dream Gift Box Beach Club - Elysium, the Spa of Madrid - NH Eurobuilding (Spain) NEW LOYALTY CARD: “NH WORLD” NH Hoteles’ totally innovative loyalty programme, “NH World”, was launched last September with the objective of rewarding the chain’s regular customers. Members receive the “NH World” card, which is the only one of its kind in the sector as it features an intelligent chip that facilitates client identification and automatic checkin, among other things. The programme has been very well received and already has 60,000 members since launching just six months ago on September 15^th, 2004. The card features important technological advantages which clearly differentiates it from the rest: it can store information and act as a back-up of client information and it automatically personalises and records information so members can use it as soon as they register. “NH World” members accumulate credits for at least 5% of the value of the products and services they consume at NH Hoteles and credits can be exchanged for complementary stays, breakfasts at NH hotels, etc. One of its unique advantages compared to other loyalty programmes is a direct and transparent credit exchange ratio where 1 credit is equivalent to €1, thus avoiding the confusion often caused by complex conversion ratios. In addition, the customer can use what he abtained from the outset because partial payment using credits is accepted in contrast to other programmes and credit usage is not subject to restrictions during certain periods. The “NH World” card’s advanced technology enables customers to enjoy a faster and better quality service as the system automatically identifies their room preferences, hobbies, most demanded services, even private observations. The card’s countless advantages include “check in express”, which enables immediate check in by simply handing in the card. “NH World” members enjoy complementary additional services such as the possibility of having the hotel store their belongings, late check out until 4pm, free accommodation for their companion and access to exclusive offers, among others. “NH World” is available at 210 hotels in 11 countries. The “NH World” programme unifies all of the company’s existing loyalty programmes: Golden Tulip’s former Ambassador Club and Astron’s Welcome Card. 41 INNOVATION 7 NH Hoteles designed a new series of products and services with a view to positioning the company as a benchmark within the city hotel industry. These are unique and original products that guarantee customer loyalty < Elysium, the Spa of Madrid - NH Eurobuilding (Spain)

42 NH WORLD FOR SHAREHOLDERS To complete the “NH World” programme, NH Hoteles has also launched a version for shareholders. With this programme, NH Hoteles wishes to reward shareholders’ and investors’ support, enabling them to enjoy the benefits already available to VIP clients and also offering them certain advantages and added benefits. This initiative aims to bring NH Hoteles closer to its shareholders, making them, too, loyal customers and hoping they will see NH Hoteles as a different and complete offering for their use and benefit. Shareholders who request membership will enjoy the following special benefits, in addition to those already enjoyed by “NH World” guest members: • A 20% bonus on the standard credits abtained by guest programme members. • Access to the exclusive NH Hoteles’ VIP Desk, with benefits such as free transfers from the airport, upgrades to superior rooms, late check out, and invitations to social and sporting events organised by NH Hoteles. • Personalised promotions that are exclusive to “NH World” shareholder members. • Annual membership renewal by merely proving that one is a shareholder. CARD FOR GROUPS NH Hoteles offers “NH World” to corporate client’s employees who can abtain credits for their personal use while travelling on business. The company card is highly personalised with the employee’s name and surname, company logo and corporate message, in addition to offering promotions and offers that are exclusive to each company. Some of the companies participating in the programme since it was launched in November 2004 include: Ericsson, Telefónica, Cap Gemini, RACE, Mitsubishi, Buon Giorno-My Alert and Bacardi. The “NH World” card is available to other non- business organisations and has also been developed for a group of the employees of the Spanish Administration among with whom it has been very successful. Agua de la Tierra Kit

43 “CHECKOUT EXPRESS” NH Hoteles has begun the installation of a unique pioneering project in the hotel business: “Checkout Express” which consists of touch screen terminals that enable customers to check out in record time and with the highest guarantees for the guest, his or her company and NH Hoteles. This initiative has been designed with a view to reducing queues and waiting time during hotel reception peak hours. Considering that checkout is a simple procedure, usually paid by credit card, NH Hoteles has designed a system to automate the process that guarantees confidentiality and provides an invoice. “Checkout Express” is very easy to use; customers merely enter their key whereby the invoice appears on the screen and if the customer is in agreement, he/she pays by credit card and collects the invoice. NH Hoteles has also taken into consideration that guests may have “NH World” credits and thus enables them to partially or totally charge the amount to their cards. CONTENT WEEKENDS, COLLECTION PACK AND NH DREAM GIFT At the end of 2003, NH Hoteles designed a new series of products within the “Urban Leisure” range. These new products are the “Content Weekends” and the “NH Collection Pack”, which offer new leisure alternatives with unique and original activities that are impossible to find on the market. A year later, there is substantial demand for these products among customers who want to discover or learn more about culture, sports or art, while enjoying the hotels’ facilities. These new products have been adapted to customers’ preferences and needs. International Jumping Championships, La Coruña - Casas Novas (Spain) - December 2004

44 •  “Content Weekends” offer an alternative to traditional tourism and propose a different and innovative cultural tourism in Spain. •  Once the product was established, “Content Weekends” were extended to include “Cities with Content” and “Content Weekends for Companies”. “Cities with Content” are individual packages that offer gastronomic, leisure, relaxation and cultural activities at the chain’s hotels in Spain or within their area of influence. Nineteen different events and activities have already been carried out including the opportunity to taste the Prince and Princess of Asturias’ “Royal Wedding Dinner” menu. Activities are organised for all age groups including our youngest guests. On the other hand, “Content Weekends for Companies” give corporate clients an alternative way of conducting their events, seminars, conventions or incentive trips whether at weekends or on working days. Some of the most successful “Content Weekends for Companies”, and which generated the highest customer satisfaction ratings, include those conducted by the Bulli Workshop, the Gregorian chant, or the health and beauty weekend. These gave participants the opportunity to enjoy gastronomic demonstrations, excursions to the Monasterio de Santo Domingo de Silos and anti- stress sessions at the NH chain’s Elysium Spas. “Content Weekends” include boarding, breakfast, lunch and sign-in fee for all program activities. Reservations are made via telephone 902 115 200 or the company web page www.nh-hotels.com. •  The “NH Collection Pack” has given rise to new distribution channels that extend product distribution via telephone, the Internet and external collaborators. One example of these new channels is the agreement signed with Repsol to promote the pack at its service stations. NH Collection Pack

Suite at the NH Príncipe de la Paz - Aranjuez - Madrid (Spain) 45 “NH Collection” for companies, a novel way of creating customer loyalty, was also launched this year. In October 2004, NH Hoteles launched “NH Dream Gift” which is similar to Spain’s “NH Collection” but marketed in Belgium and the Netherlands. This pack can be purchased at any of the chain’s hotels in Belgium and the Netherlands for use in these two countries and over 2,000 packs have gone on sale at €79 euros since its launch. The packs are valid until December 31^st, 2005 at a selection of hotels in the NH Collection category and at hotels in the NH group in the Netherlands and Belgium. NEW WEB In 2004, NH Hoteles extended and improved the web services to facilitate customer access through, on the one hand, creating a more personalised page according to the client profile and, on the other, simplifying the access routes. Likewise, in October 2004, NH Hoteles launched an Italian version of the web page with the intention of reaching new markets, like it did in early 2004 when it made the website available in both traditional and simplified Chinese. The company web page has incorporated new functionalities, such as several links that enable customers to check weather forecasts and information on trains, buses and airports. In addition, NH Hoteles’ customers can now receive their reservation confirmations and the weather forecast during their stay via e-mail. In January 2004, NH Hoteles launched the company web page in simplified Chinese (which is used in Continental China and Singapore) and a few months later in traditional Chinese (spoken in Hong Kong and Taiwan) in order to reach potential customers in expanding markets. NH Hoteles was the first Spanish hotel company to publish its website in Chinese. It is worth mentioning that the Asian market represents a potential target of 10 million customers.

46 This new web page makes all of the chain’s hotels available to users, giving them the possibility to check availability and make reservations in real time, while availing of personalised promotions for each market. •  CLIENT PAGE One of the new applications created is the “Client Page” designed for corporate clients and, in particular, SMEs. This enables corporate clients to make reservations at their negotiated rates with discounts of up to 25%. Customers can also access on-line personalised promotions and an activity and production report through this page. The “Client Page” also gives customers the opportunity to create a list with pre-selected hotels and meeting rooms to facilitate the reservation’s process and manage their budgets, greatly reducing administrative work as it generates a historical personalised report for each customer showing all details of the invoice. The “Client Page” is available in two modalities; one for groups or organisations, and another for individual customers. The “Client Page” has a tool called “Organise your event” which enables users to organise and easily inform participants about an event through a web page or e-mailing. •  NH EMPLOYEE CLUB “NH Employee Club” is another technological initiative created by NH Hoteles in 2004. This web page is designed to assist corporate clients’ employees in organising their leisure trips. In addition to providing detailed information on hotels, the “NH Employee Club” enables corporate clients to offer their employees special promotions and preferential services at hotels such as parking and laundry services. At the same time, this web page is a new technology tool that enables the client’s Human Resources Department to offer their employees the best rates for personal stays without having to invest their own resources.

47 NH Hoteles web page in Chinese •  MY NH “My NH” is another web page designed by NH Hoteles. This service gives customers the opportunity to create their own page and stores all of their personal information in a confidential manner. Individual customers can organise their private page under 3 sections; “My reservations”, where reservations can be modified or cancelled on-line, “My promotions” which provides access to personalised offers, and “My favourite hotels” which creates a list of customers’ favourite hotels thus facilitating the booking process. Since its launch in March 2004, “My NH” has over 15,000 registered users (6% in the USA) and receives some 50,000 visits daily. •  TRADE PAGE In February 2005, the chain introduced yet another innovative web initiative: “Trade Page”. This new service is designed for travel agents with the objective of facilitating and automating their business relationship with NH Hoteles. The “Trade Page” offers a service that is totally adapted to the client’s profile and provides different and personalised access. The travel agent has its own unique and personalised page containing all of the on-line information and services required for more efficient, transparent and permanent management of its business with NH Hoteles.

48 “ELYSIUM, THE SPA AT NH HOTELES” NH Hoteles currently operates 3 “Elysium Spa” centres in Sotogrande, Marbella and Madrid. This year, the “Elysium Spa” was firmly established as an innovative product within the hotel sector that is characteristic of the NH Hoteles Group. In 2005, new “Elysium Spa” centres will be opened in the new NH Obradoiro in Santiago de Compostela and the NH Constanza in Barcelona. The group has also planned to build Elysium centres in hotels in other countries, such as the NH Milan Via Tortona in Milan, the new Donnafugata complex in Sicily (Italy), Baden Baden (Germany) and the NH Parque Central in Havana (Cuba). The “Elysium, the Spa at NH Hoteles” concept is an exclusive centre, highly specialised in hydrotherapy, fitness and beauty treatment, which is the most natural means of taking care of oneself and finding the perfect balance between body and mind. In addition, the centres offer a gym with the most advanced equipment and classes with the latest gym techniques. Under the guidance of a large group of specialised beauticians, Elysium customers can enjoy the most innovative beauty treatments, meticulous attention, and top of the range health and beauty programmes. In addition, “Elysium Spas” are equipped with modern and luxurious dressing rooms, beauty treatment booths, and offer massage and recovery activities. “Elysium Spa” centres boast spectacular water areas including swimming pools with different temperature-controlled sections and a swimming and floating lane, water beds, air blower, massage nozzles at three different levels, a bubble garden, hydromassage seats, two swan necks, a water bat and two jacuzzis. This water area also boasts hydrothermal elements like pebble paths, a Elysium the Spa of Marbella - NH Alanda - Marbella (Spain)

49 sauna, Turkish bath, ice booth, atomised water booth, Elysium waterfall, jet shower, shower alternating hot and cold water, and three treatment booths with therapeutic bathtubs. NEW ROOMS NH Hoteles has begun to introduce its new three and four-star rooms that are designed to offer guests even greater quality and comfort. Design improvements in new rooms enable guests to enjoy uniform, practical and standardised furniture at NH Hoteles’ establishments. The rooms are characterised for their modern, cosmopolitan, comfortable and functional style. The more important enhancements include double soundproofed walls, water and fireproof wooden ceilings, non-slip ceramic tile floors in bathrooms and centralised energy-saving systems. All of the guest room furniture is independent and mobile, made from high quality materials, there are no tailored assemblies and it is easily washable. Another feature is the new pale coloured mattresses, which are lighter and machine-washable. Bathrooms have been fitted with radiator towel rails and bathroom fittings are hung to enable thorough cleaning. An in-built cistern with a flush-reducing device saves water and reduces noise. In four-star rooms, transparent glass panels divide bathrooms and bedrooms providing more natural light. With these new rooms, NH Hoteles improves the quality of its offering and standardisation has enabled it to considerably reduce costs compared to the previous designs. This new design has already been used in hotels like the NH Geneva Airport hotel in Switzerland, the NH Brussels City Centre and the NH Grand Place Arenberg in Belgium, as well as the NH Central Convenciones in Seville (Spain). New standard room at NH hotels

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