6 CONSOLIDATED FINANCIAL STATEMENTS 2004 CONSOLIDATED ANNUAL ACCOUNTS NH HOTELES, S.A. AND DEPENDENT COMPANIES CONSOLIDATED BALANCE SHEETS FOR THE YEARS ENDED ON 31^st DECEMBER 2004 AND 2003 (In thousand euros) ASSET 2004 2003 FIXED ASSETS 1,374,633.04 1,370,481.31 Formation expenses (note 6) 9,167.14 12,898.46 Intangible assets (note 7) 77,273.99 72,973.02 Tangible fixed assets (note 8) 1,187,781.53 1,199,542.45 Investments (note 9) 100,410.38 85,067.38 GOODWILL ON COSOLIDATION (note 10) 122,657.91 129,954.68 DEFERRED EXPENSE (note 10) 19,975.18 21,079.60 CURRENT ASSETS 304,058.34 323,928.03 Inventories (note 12) 83,219.19 77,447.71 Trade accounts payable (note 13) 83,675.55 102,658.13 Other debtors (note 14) 39,105.48 35,931.56 Current asset investments (note 15) 64,641.52 42,913.81 Shares in the Controlling Company held short term (note 16) 256.95 1,049.86 Cash and banks 23,750.64 52,696.77 Accrued expenses 9,409.01 11,230.19 TOTAL ASSETS 1,821,324.47 1,845,443.62

7 CONSOLIDATED FINANCIAL STATEMENTS 2004 LIABILITIES 2004 2003 SHAREHOLDERS’ EQUITY (note 16) 620,287.35 613,270.52 Share capital 239,065.80 239,065.80 Share premium 91,783.50 91,836.22 Reserves of the Controlling Company 168,496.80 115,822.55 Reserves in consolidated companies 213,714.35 244,875.52 Translation differences (134,905.36) (129,188.41) Profit and loss of the Controlling Company 42,132.26 50,858.84 OUTSIDE SHAREHOLDERS (note 17) 224,216.25 246,476.37 DEFERRED INCOME (note 18) 4,645.92 6,189.51 RESERVES FOR CHARGES AND LIABILITIES (note 19) 59,096.98 82,402.66 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 683,117.32 565,166.00 Issue of debenture loans and other traded securites (note 20) 107.77 130,58 Long-term trade creditors (note 21) 49,445.59 44,132.31 Long-term bank loans (note 22) 566,379.39 442,778.67 Other long-term creditors (note 23) 67,184.57 78,124.44 CREDITORS FALLING DUE WITHIN ONE YEAR 229,960.65 331,938.56 Issue of debenture loans and other traded securities (note 20) 25.38 24.36 Bank loans and overdrafts (note 22) 39,400.74 131,906.87 Trade creditors (note 24) 119,798.18 123,941.46 Other creditors (note 25) 70,236.35 75,146.82 Trade provisions 500.00 919.05 TOTAL LIABILITIES 1,821,324.47 1,845,443.62 Notes 1 to 36 to the Consolidated Accounts are an integral part of these Consolidated Balance Sheets.