NH Hoteles

DEBIT 2004 2003 EXPENSES: Raw Materials and Consumables 105,100.20 109,881.04 Staff costs (note 27) 286,985.13 303,049.26 Fixed asset depreciation 69,758.39 72,264.11 Appropriations to trade proisions 2,549.01 5,656.99 Other operatin charges 381,424.49 359,719.57 TOTAL OPERATING EXPENSES 845,817.22 850,570.97 OPERATING PROFIT 111,084.26 81,910.55 Interest expense 43,914.77 52,414.32 NET FIANANCIAL INCOME - - Share in losses of companies consolidated using the equity method (note 9) 549.76 - Goodwill arising on consolidation written off (note 10) 7,210.00 7,150.81 PROFIT FROM ORDINARY ACTIVITIES 76.459,44 42.789,85 Loss on disposal of fixed assets (note 27) 4,130.78 4,860.00 Change in fixed-asset provisions 1,824.00 2,822.05 Extraordinary expenses and losses 11,479.87 58,251.33 EXTRAORDINARY POSITIVE (2.679,55) (29.651,67) CONSOLIDATED PROFIT BEFORE TAXES (79.138,99) (72.441,52) Corporation tax (note 28) 22,625.55 16,815.88 CONSOLIDATED PROFIT FOR THE YEAR (56.513,44) (55.625,64) Profit attributed to outside shareholders (note 17) 14,381.18 4,766.80 PROFIT FOR THE YEAR ATTRIBUTED TO THE CONTROLLING COMPANY (42.132,26) (50.858,84) 8 CONSOLIDATED FINANCIAL STATEMENTS 2004 CONSOLIDATED PROFIT AND LOSS ACCOUNTS NH HOTELES, S.A. AND DEPENDENT COMPANIES CONSOLIDATED PROFIT AND LOSS ACCOUNTS FOR THE YEARS ENDED ON 31^st DECEMBER 2004 AND 2003 (IN THOUSAND EUROS)

9 CONSOLIDATED FINANCIAL STATEMENTS 2004 CREDIT 2004 2003 INCOME: Net turnover (note 26) 950,007.84 921,564.05 Other operating income 6,893.64 10,917.47 TOTAL OPERATING INCOME 956,901.48 932,481.52 OPERATING LOSS - - Income from fixed and variable-interest securities 205.36 577.46 Revenues from capital holdings 11.14 346.90 Other financial income 16,833.21 18,837.35 NET FINANCIAL EXPENSE 26,865.06 32,652.61 Share in profits of companies consolidated using the equity method - 682.72 LOSSES FROM ORDINARY ACTIVITIES - - Profits on disposals of fixed assets (note 26) 1,676.15 6,840.00 Profits on disposal of consolidated companies (note 26) - 60,120.52 Extraodinary income and profit (note 26) 18,438.05 28,624.53 EXTRAODINARY NEGATIVE - - CONSOLIDATED LOSS BEFORE TAXES - - CONSOLIDATED LOSS FOR THE YEAR - - PROFIT FOR THE YEAR ATTIBUTED TO THE CONTROLLING COMPANY - - Notes 1 to 36 to the Consolidated Accounts are an integral part of these Consolidated Balance Sheets.