12 consolidated annual accounts 05 NH HOTELES, S.A. AND DEPENDENT COMPANIES CONSOLIDATED BALANCE SHEETS AS AT 31 DECEMBER 2005 AND 2004 (Thousand euros) NH HOTELES, S.A. AND DEPENDENT COMPANIES consolidated annual accounts for 2005 drawn up in accordance with the International Financial Reporting Standards adopted by the European Union ASSETS NOTE 2005 2004 (*) LONG-TERM ASSETS Tangible fixed assets 9 1,408,314 1,357,574 Goodwill 7 113,586 96,834 Intangible assets 8 59,397 61,967 Holdings in associated companies 10 92,728 36,834 Permanent investments Loans and accounts receivable not available for trading Other permanent investments 11.1 11.2 116,917 94,481 22,436 66,957 50,764 16,193 Advance taxes 23 35,868 40,877 Other long-term assets 3,998 6,037 Total long-term assets 1,830,808 1,667,080 CURRENT ASSETS: Inventories 12 96,902 83,519 Trade debtors 13 130,356 81,425 Other debtors Taxes refundable Other debtors 23 27,894 13,527 14,367 34,035 14,119 19,916 Current-asset investments Finanacial Asset investments at maturity Traded finanacial asset 14.1 14.2 27,844 26,621 1,223 64,642 64,142 500 Own Shares - 257 Cash and banks and other cash equivalents 15 18,039 23,751 Other current assets   10,947 9,409 Total current assets 311,982 297,038 Total assets 2,142,790 1,964,118

13 consolidated annual accounts 05 (*) Included for the sake of comparison (see Note 2.2) Notes 1 to 31 described in the Notes to the Accounts and Appendices I/III are an integral part of the consolidated balance sheets as at 31 December 2005 and 2004. LIABILITIES AND NET EQUITY NOTE 2005 2004 (*) NET WORTH: Share capital 16.1 239,066 239,066 Reserves of the Controlling Company 16.2 287,548 260,331 Reserves in fully consolidated companies 16.3 150,317 116,883 Reserves in proportionally consolidated companies 16.3 468 990 Reserves in companies consolidated using the equity method 16.3 8,651 2,663 Reserve for own shares held - 37,587 Equity valuation adjustments 16.4 4,772 - Translation differences 17,821 (2,788) Own Shares 16.5 (301) - Consolidated profit for the year 62,243 55,203 Net equity attributable to shareholders of the Controlling Company 770,586 709,935 Minority interests 16.6 119,682 137,266 Total net worth 890,268 847,201 LONG-TERM LIABILITIES Debenture loans and other traded securities 17 83 108 Bank loans and overdrafts 18 592,871 563,857 Creditors for finance leases 19 316 13,568 Other long-term liabilities 20 81,335 81,589 Provisions for charges and liabilities 22 42,999 44,696 Deferred taxes 23 114,254 128,935 Total long-term liablilities 831,858 832,753 CURRENT LIABILITIES: Debenture loans and other traded securities 17 25 25 Bank loans and overdrafts 18 136,829 38,461 Creditors for finance leases 19 399 615 Trade creditors and other accounts payable 24 169,394 148,767 Other current financial liabilities 1,130 1,094 Taxes and Social Security contributions 23 36,971 26,161 Provisions for charges and liabilities 22 7,892 40,252 Other current liabilities 25 68,024 28,789 Total current liabilities 420,664 284,164 Total liabilities and net equity 2,142,790 1,964,118