7. Goodwill The balance recorded under this caption is for the net goodwill that has arose on the purchase of certain companies. Set out below is an analysis of this balance (thousand euros): Set out below is the movement in this chapter of the consolidated balance sheet in 2005 and 2004 (in thousand euros): The recoverable value of the goodwill of NH Hoteles Deutschland, GmbH. and NH Hoteles Austria, GmbH. has been allocated to each generating cash flow unit using projections for results, capital expenditures and working capital, for the remaining years of operation of the lease agreements of the hotels. The rate of discount used is in line with the Company’s weighted average cost of capital (WACC). All other recoverable values of this goodwill has ben assigned to each generating cash flow unit five-year forecasts and using a methodology similar to that used for NH Hoteles Deutschland, GmbH. and NH Hoteles Austria, GmbH goodwill. 8. Intangible assets Set out below is an analysis and the movements on the different intangible asset accounts in 2005 and 2004 (thousand euros): 29 consolidated annual accounts 05 2005 2004 NH Hoteles Deutschland, GmbH and NH Hoteles Austria GmbH 108,674 91,984 Nacional Hipana Hoteles, S.R.L. de C.V. 3,176 3,130 Other 1,736 1,720 Total 113,586 96,834 Net goodwill 31.12.03 Losses due to impairment of value Translation difference Net goodwill 31.12.04 Additions (Retirements) Translation difference Net goodwill 31.12.05 NH Hoteles Deutschland, GmbH and NH Hoteles Austria, GmbH 98,725 (6,740) - 91,984 16,690 - 108,674 Nacional Hipana de Hoteles, S.R.L. de C.V. 3,203 - (73) 3,130 - 46 3,176 Other 1,733 - (13) 1,720 - 16 1,736 Total 103,661 (6,740) (86) 96,834 16,690 62 113,586 Balance as at 31.12.03 Additions/ Charges Disposals Balance as at 31.12.04 Additions Charges Disposals Balance as at 31.12.05 COST Rights of beneficial use 30,976 144 (63) 31,057 81 - 31,138 Lease premiums 6,363 7,162 (122) 13,403 559 - 13,962 Concessions 31,365 188 (885) 30,668 287 (138) 30,817 Software 13,162 3,958 (89) 17,031 3,390 (33) 20,388 81,866 11,452 (1,159) 92,159 4,317 (171) 96,305 ACCUMULATED AMORTISATION Rights of beneficial use (6,678) (998) - (7.676) (912) - (8,588) Lease premiums (3,772) (714) - (4,486) (448) 75 (4,859) Concessions (9,396) (958) 183 (10,171) (884) 86 (10,969) Software (4,909) (3,022) 73 (7,859) (4,652) 19 (12,492) (24,755) (5,692) 256 (30,192) (6,896) 180 (36,908) Net Book Value 57,111 61,967 59,397

8.1 RIGHTS OF BENEFICIAL USE On 28th July 1994, NH Hoteles, S.A. set up a right of beneficial use on the NH Plaza de Armas Hotel in Seville owned by the “Red Nacional de Ferrocarriles Españoles (RENFE)”, for a period of 30 years as from the date the agreement was signed. The price to be paid for this by NH Hoteles, S.A. to RENFE is 30.20 million euros, in instalments that will be paid up to the year 2014. The Group has recorded under “Rights of beneficial use” all the amount agreed as the price for the operation and, in order to suitably record it in the respective financial periods, it takes the result of spreading the cost of the right over the thirty years of the term of the agreement to the consolidated Profit and Loss account, using an amount that increases by 4% every year.  In turn, the captions “Other current liabilities” and “Other long-term liabilities” (see Note 20) on the accompanying consolidated balance sheet record the amounts pending payment in the short and long term as at 31 December 2005, which amount to 1.49 million euros and 11.96 million euros, respectively (1.49 million euros and 13.46 million euros as at 31 December 2004). 8.2 LEASE PREMIUMS In 2004, the column “Additions/Charges” recorded 7 million euros for the premium paid to obtain the lease contract on the NH Laguna Palace Hotel (Mestre-Venice). This premium, which is not part of the lease rent, is being written off on a straight-line basis over the term of the contract (18 years). 8.3 SOFTWARE The column “Additions/Charges” chiefly records the costs incurred in the project to install a new computer system in the Group during 2004 and 2005. 9. Tangible fixed assets Set out below is an analysis and the movements on the different intangible asset accounts in 2005 and 2004 (thousand euros): In 2005 and 2004 the column “Change in scope of consolidation” records the effect of the inclusion/retirement of tangible fixed assets of certain companies that were included/excluded in the consolidated group during each of these years (see Note 2.6.6). The column “Translation differences” records the effect of the change in the exchange rate used for translating the different tangible fixed asset captions. 30 consolidated annual accounts 05 Balance Change in the Balance Change in the Balance as at scope of Translation as at scope of Translation as at 01.01.04 consolidation differences Additions Disposals 31.12.04 consolidation differences Additions Disposals 31.12.05 COST Land and buildings 1,250,289 (48,992) (10,363) 15,575 806 1,207,315 755 27,233 19,004 (14,166) 1,240,141 Technical plant and machinery 311,468 (4,078) (3,045) 34,532 7,069 345,946 (215) 5,027 36,866 (1,621) 386,003 Other plant, tools and furniture 231,901 (3,290) 177 29,870 (2,633) 256,025 (249) 3,985 21,887 (3,638) 278,010 Other investments 26,196 (66) (1,013) 1,774 (6,653) 20,238 (223) 2,017 11,449 - 33,481 Fixed assets under construction 25,288 - (100) 647 - 25,835 32 239 10,418 - 36,524 1,845,142 (56,426) (14,344) 82,398 (1,411) 1,855,359 100 38,501 99,624 (19,425) 1,974,159 ACCUMULATED DEPRECIATION Constructions (129,358) 26,305 4,915 (13,902) 180 (111,860) 275 (7,817) (13,072) 1,764 (130,710) Technical plant and machinery (137,914) 3,986 450 (28,222) 952 (160,748) 271 (704) (17,772) 1,540 (177,413) Other plant, tools and furniture (134,067) 3,108 244 (16,626) 1,922 (145,419) 100 (2,343) (25,950) 2,065 (171,547) Other investments (12,136) 66 234 (2,538) 2,291 (12,083) 219 (1,924) (3,524) - (17,312) (413,475) 33,465 5,843 (61,288) 5,345 (430,110) 865 (12,788) (60,318) 5,369 (496,982) Provisions (58,979) - (148) (8,548) - (67,675) - (1,111) (799) 722 (68,863) NET BOOK VALUE 1,372,688 1,357,574 1,408,314

The most significant movements in this item during 2005 and 2004 are as follows: i)  The most significant additions in Tangible fixed assets during 2005 and 2004, analysed by business unit, are as follows: Worthy of note for 2004 are the capital expenditures on fixed assets at the NH Laguna Palace Hotel (7.69 million euros) in Mestre (Venice), the Spa Elysium at the NH Eurobuilding Hotel (4.28 million euros) in Madrid, the Club House of the “La Reserva” Golf Course (4.01 million euros) and the NH Sotogrande Hotel (8.36 million euros) both in Sotogrande (Cadiz). Likewise, the most significant additions in 2005 were the renovation of the hotels NH Calderón (5.3 million euros) and NH Numancia (4.6 million euros), both in Barcelona, the NH Central de Convenciones Hotel (4.7 million euros) in Seville, the NH Almenara Hotel (5.6 million euros) in Sotogrande (Cadiz) and the NH Vienna Airport Hotel (4.7 million euros) in Vienna. All the other additions in these two years are capital expenditures at different hotels for amounts of less than 4 million euros each. ii)The  most  significant  retirements  in  2004  were,  for  the  most  part,  for  land  and  buildings,  technical  plant  and/or  furniture  of  the  NH Villacarlos Hotel (5.05 million euros) in Valencia, and the NH Docklands Hotel (1.26 million euros) in Antwerp. The most significant retirements in 2005 were for the most part for land and buildings, technical plant and/or furniture of the NH Sport and NH Orus Hotels (4.6 million euros) in Zaragoza. As  at  31  December  2005,  there  were  tangible  fixed  assets  acquired  under  finance  leases  totaling  1,682  thousand  euros  in  cost  and  418 thousand euros in accumulated depreciation (15,848 thousand euros in cost and 817 thousand euros in accumulated depreciation in 2004). As at 31 December 2004, the main asset under a finance lease was the building housing the NH Dusseldorf Eden Hotel (Germany). Its contract was terminated in December 2005 and replaced by an operating lease agreement. As at 31 December 2005, the main asset under a finance lease was the furniture in the NH Príncipe de la Paz Hotel, in Aranjuez (Spain). Set out below is an analysis, as at 31 December 2005, of the tangible fixed assets of the Group where an impairment of value has been detected. Impairment attributed to land: 31 consolidated annual accounts 05 Country 2005 2004 Spain 48,173 38,959   Benelux 13,402 20,112   Germany 16,012 7,720   Latin America 21,041 7,862   Rest of Europe 996 7,745   Total 99,624 82,398   Thousand  euros Country Book Value Fair Value Value Impairment Tax Effect Effect on Reserves Germany 2,609 2,147 (462) - 462 Belgium 16,889 14,400 (2,489) 747 1,742 Netherlands 47,304 35,593 (11,711) 3,513 8,198 South Africa 881 422 (459) 138 321 Total 67,683 52,562 (15,121) 4,398 10,723

Impairment assigned to other fixed assets: As at 1 January 2004 the provision for impairment of assets amounted to 58,979 thousand euros. During 2004 and 2005 an additional provision of 8.5 million euros and 0.8 million euros, respectively, has been set up, as the Administrators of the Controlling Company deem that the recoverable value of these assets with regard to the changeover date was lower than their book value by these amounts.   The Group has signed insurance policies to cover against the exposure to risk of its different tangible fixed assets, as well as against any claims that may be filed against it for carrying on its business. These policies are deemed to provide sufficient cover for the risk exposure of these assets. 10. Holdings in associated companies Set  out  below  is  an  analysis  as  at  31  December  2005  and  2004  of  the  holdings  in  companies  consolidated  using  the  equity  method  (in thousand euros): The Group’s holding in Jolly Hotels, S.p.A. includes a positive difference on consolidation of approximately 21 million euros, which can be allocated to the assets of this company. 32 consolidated annual accounts 05 Thousand  euros Country Book Value Fair Value Value Impairment Tax Effect Effect on Reserves Attributable to minority interests Germany 6,579 - (6,579) - 6,579 - Belgium 2,195 832 (1,363) 409 954 - Spain 19,455 2,448 (17,007) 4,468 11,416 1,123 Netherlands 47,248 29,555 (17,693) 5,308 12,385 - South Africa 1,634 - (1,634) 490 1,144 - Uruguay 7,611 2,392 (5,219) 1,461 3,645 113 Mexico 63,636 59,389 (4,247) - 4,206 41 Total 148,358 94,616 (53,742) 12,136 40,329 1,277 Net Balance as at 31.12.03 Profit/(loss) 2004 Net Balance as at 31.12.04 Additions Retirements Profit/(loss) 2005 Net Balance as at 31.12.05 Jolly Hotels, S.p.A. (*) 36,673 (598) 36,075 - (1,225) (232) 34,618 Palacio de la Merced, S.A. 691 48 739 376 - (38) 1,077 Fonfir1, S.L. 20 - 20 - - - 20 Harrington Hall Hotel, Ltd. - - - 1,259 - (379) 880 Caribe Puerto Morelos, S.A. de C.V. (**) - - - 16,552 - - 16,552 Corporación Hotelera Dominicana, S.A. (**) - - - 33,268 - - 33,268 Corporación Hotelera Oriental, S.A. (**) - - - 4,121 - - 4,121 Promociones Marina Morelos, S.A. de C.V. - - - 2,192 - - 2,192 37,384 (550) 36,834 57,768 (1,225) (649) 92,728 (*) Records the audited profit/(loss) for 2004 and the estimate for profit/(loss) for 2005. (**) Companies with a holding of more than 20% but where the shareholder structure is not entirely defined as at the date hereof and is expected to change in the short term (see Note 2.6.6). Total