Concepts 10 NH Annual Report 2006 57

Last September 2006, the first Nhow hotel of NH Hoteles opened in Milan. The Company has developed a new and exclusive category of contemporary hotels, a laboratory of trends that incorporates the new philosophy of modern living: technological, creative and luxurious. Nhow reinterprets spaces, times and services in such a way that they surround the customers as soon they enter in the hotel, from the hallway to the rooms. Choosing Nhow means becoming part of a community, a way of living in comfort and up to the minute. As a synthesis of a new concept of living, Nhow offers quality never seen in hotel service. This concept attempts to become the reference for the most innovative cultural, social and artistic movements of the large globalized urban centres that are in constant transformation. Milan The first Nhow hotel is born in Milan, the capital of fashion and design. The city represents the engine and pulse of the country, a city that is erected as a meeting point of trends. The city hosts some of the most representative artistic and cultural events of the international scene. All this makes Milan the emblem of contradictions, between classic and modern, between trends and the most “retro” style, a city where everything lives together, from the most avant-garde to the most underground. The hotel Nhow Milan is located on Via Tortona 35, a strategic location between main internal and external arteries of the city. The hotel represents one of the most important projects of Milan’s industrial renewal. The “Tortona & Navigli” area has become, in very few years, the fashion district of the city with a lively and fervent atmosphere, both in the day and night time, full of charming restaurants, bars, showrooms as well as design and photography studios. The hotel is located just 12 km from the Linate airport, 2 km from the neuralgic centre of the city and from the Milan Trade Fair. The famous designer Matteo Thun and the architect Daniele Beretta have united their efforts and talents to create a hotel where the guest is left everything but indifferent. Nhow changes the architectural and space distribution in order to make their socially model. The hotel represents an authentic container of experiences that is ready to surprise you at every glance, movement or thought, exceeding any expectation. Nhow integrates the individual into the most avant-garde movements of current society, a meeting point of the most dynamic travellers. The 249 rooms of the hotel, divided into 4 floors, are conceived as vital autonomous and modular spaces, providing solutions never seen before for the maximum enjoyment of the stay. Spaces in movement From the time they enter the hotel, customers are surprised upon finding a space that joins trends and awakens the senses. Due to the special relationship of Nhow with the world of art and fashion, the common areas of the hotel such as reception, the lobby or the exit from the elevators, among others, become environmental spaces in constant transformation due to original design objects and pieces of art. Nhow's Art Management renews the artistic and cultural offer every 3 months, creating an environment that is always new concealing new discoveries around every corner. These spaces are intended for housing the works of art from established artists and new designers, who allow their works to be displayed thanks to agreements with the main design houses and international art galleries. The hotel becomes a showroom for the most daring and avant- garde creations, where all displayed elements are for sale. NH Annual Report 2006 58

NH Annual Report 2006 59 Events Given the configuration and design of the building, the hotel can host all types of events such as fashion shows, company presentations, publishing events, film shootings, photography sessions or private parties. Flavours The Nhow restaurant is a space with its own philosophy, which attempts to go beyond the boundaries of taste, a true workshop of high creative cuisine. Nhow has invested in innovative cuisine based on Mediterranean culture, rich in flavours, with surprising presentations and without neglecting the health of the customers. Its cuisine is based on the most advanced culinary techniques, mixed with the most traditional flavours, is a conjunction that will not cease to surprise the customer on each new occasion. Nhow - Milan – Italy

NH Annual Report 2006 60 NH Hoteles has 20 “nhube” establishments open in Spain, Germany, Austria, The Netherlands and recently in Mexico. Since 2006, the company has incorporated 5 "nhube" spaces to the chain, investing in environments that bring together the restaurant, leisure and relaxation service of the hotels. The new “nhube” areas are located in Spain (Valladolid and Barcelona), in Germany (Stuttgart) and in Mexico (Santa Fe). “Nhube” comfortably combines a lounge, dining room, bar-cafeteria and even a library, a multifunctional space where you can enjoy while watching television, browse the Internet, play and listen to music, eat, drink and relax at the same time. The gastronomic offer of “nhube”, designed by the prestigious chef Ferran Adria, is based on simple food prepared with the highest quality ingredients, which are combined with a decorative surrounding that stands out for its neutral colours, natural fabrics and careful lighting in its different environments. Currently, after the success of the “nhube” concept, NH Hoteles has signed four projects to incorporate new spaces in Spain, Cuba and Mexico. “nhube” of the NH Stuttgart Airport Germany

NH Annual Report 2006 61 NHUBE TOTAL OPEN NHUBE SPACES 20 TOTAL NHUBE SPACES PLANNED (UNTIL APRIL 2007) 4 Open in Spain NH BALBOA MADRID March-03 NH CARTAGENA CARTAGENA February-04 NH SAN SEBASTIÁN DE LOS REYES MADRID April-04 NH PACÍFICO MADRID January-05 NH CENTRAL CONVENCIONES SEVILLE January-05 NH ALCORCÓN MADRID March-05 NH SANT BOI LLOBREGAT BARCELONA July-05 NH PLAZA MAYOR LEÓN July-05 NH PARLA MADRID September-05 NH ALICANTE ALICANTE September-05 NH MERCADER MADRID October-05 NH BALAGO VALLADOLID January-06 NH NUMANCIA BARCELONA May-06 NH CONSTANZA BARCELONA February-07 Total nhubes open in Spain 14 Open in Germany NH FRANKFURT AIRPORT FRANKFURT December-04 NH NÜRNBERG CITY NUREMBERG October-05 NH STUTTGART AIRPORT STUTTGART March-07 Total nhubes open in Germany 3 Open in Austria NH VIENNA AIRPORT VIENNA December-05 Total nhubes open in Austria 1 Open in The Netherlands NH DEN HAAG THE HAGUE July-05 Total nhubes open in Holland 1 Open in Mexico NH SANTA FE SANTA FE February-07 Total nhubes open in Mexico 1 Firmados en España Location Planned Opening Signed in Spain NH SANTA CRUZ TENERIFE SANTA CRUZ DE TENERIFE 2007 NH VIRGEN DEL PUERTO MADRID 2008 Total nhubes signed in Spain 2 Signed in Cuba NH PARQUE CENTRAL HAVANA 2007 Total nhubes signed in Cuba 1 Signed in Mexico NH GUADALAJARA GUADALAJARA 2008 Total nhubes signed in Mexico 1 ABIERTOS OPEN Location Opening Date SIGNED Location Planned Opening

NH Annual Report 2006 62 FAST GOOD The food already well-known as the new restaurant culture created by NH Hoteles with the collaboration of Ferran Adrià, is consolidating as a gastronomic phenomenon that began in 2004. Currently, the company has 7 "Fast Good" establishments open, five in Madrid, one in Las Palmas de Gran Canaria and one in Santiago de Chile. The company is also planning to open a further 3 restaurants in Madrid, Valencia and Barcelona (Spain). The unprecedented success of the “Fast Good” phenomenon is reflected in the wide spread acceptance of the concept by consumers at all the restaurants open in 2006. In addition, during the second quarter of 2006, "Fast Good" has reached agreements with prestigious brands with whom it shares the same target market, which have helped with the positioning of "Fast Good" as a quality brand, as well as greater knowledge of the brand in different channels. Fast Good takes off “Fast Good” currently designs two sandwiches from the paid menu on IBERIA planes for mid-range flights (flights up to four hours). “Fast Good” has a significant brand presence of this menu, which has promoted the knowledge of "Fast Good" among international customers of the airline company. FAST GOOD OPEN ESTABLISHMENTS Country Location Address Fast GO Store Spain Madrid C/ Padre Damián Madrid C/ Juan Bravo YES Madrid C/ Orense YES Madrid C/ Fuencarral* Alcobendas (Madrid) C/ Anabel Segura YES Las Palmas de Gran Canaria C/ Simón Bolívar YES Chile Santiago de Chile C/ Isidora Goyenechea FAST GOOD SIGNED ESTABLISHMENTS (up to April 2007) Country Location Address Fast GO Store Spain Madrid C/ Tetuán YES Valencia Gran Vía Marqués del Turia YES Barcelona C/ Balmes YES *Cold food point of sale only

NH Annual Report 2006 63 Fast Good, C/ Juan Bravo Madrid - Spain

CASINO DE MADRID During 2006, the Casino de Madrid has continued to reap rewards with the help of the popular chef Paco Roncero. Among the awards that have been given to the Casino de Madrid or its personnel are the following: •  “Best Madrid Restaurant 2006" in the 4th edition of the Luna de Metrópoli Awards (El Mundo Newspaper). •  Sánchez Cotán Award 2005 to the Terrace of the Casino for the “Best Restaurant Menu Design". •  Paco Roncero: Award to the “Best Future Chef” by the International Gastronomy Academy, and National Gastronomy Award to the "Best Kitchen Manager", granted by the Spanish Gastronomy Academy and the Cofradía de la Buena Mesa. •  Award to the “Best Future Sommelier” by the International Gastronomy Academy to Maria José Huertas (Sommelier of the Casino de Madrid). Among the most relevant events in the past financial year, the Casino de Madrid has inaugurated the Taller InNHova, which attempts to research and develop new gastronomic projects. From the hand of Ferran Adria, the gastronomic consultant of the Casino, “La Terraza” has become one of the most emblematic restaurants in Madrid (Spain) over the last years. The recognition of the high quality and service of this exceptional location is currently reflected in the classification of the most prestigious gastronomic guides: Michelin Guide: 1 star; Gourmetour Guide: 9; Campsa Guide: 2 suns. NH Annual Report 2006 64 Casino de Madrid Madrid – Spain

NH Annual Report 2006 65 Elysium Travel & Beauty Spa Elysium Spa, the wellness line of the NH Hoteles, has opened two new centres in 2006 within Terminal 4 of the Airport of Barajas in Madrid (Spain). The new Elysium Travel Spa and Elysium Beauty Spa centres are pioneer establishments for these kinds of traits in airports throughout Europe. These establishments try to reconcile personal well-being with the long waiting times and tiredness brought on by going through airports. Under a unique and innovative wellness model, Elysium Travel & Beauty Spa meets the personal health needs of the travellers. On the other hand, Elysium Travel & Beauty Spa seeks to reposition “travelling habits”, by making the passing through the airport a part of the trip enjoyment. Elysium Beauty Spa is located in the billing area of the new Terminal 4 of the Airport of Barajas, in Madrid (Spain). On the other hand, the Elysium Travel Spa is located at the T4 “Satellite” terminal, just next to the Iberia VIP room. The two centres are made up of an esthetic area where a wide range of services are offered and a boutique area selling high-quality cosmetics with the most exclusive brands on the market. Elysium, Quality Guarantee The quality and exclusivity of the Elysium Spa is backed internationally by the “Conde Nast Johansens” award for excellence, granted to the first Elysium centre located at the Hotel Almenara de Sotogrande (Spain), recognised as “The Most Exclusive Hotel Spa of Europe”. In addition, NH Hoteles has another two complete Elysium Spa Centres in Madrid and Marbella (Spain).   Elysium Travel Spa at the airport of Madrid Madrid – Spain