New products and services 11 NH Annual Report 2006 67

Premium Rooms NH Hoteles has selected the best rooms from the chain in Spain and has put them under a new category: Premium Rooms. Designed for the customer who is looking for something different when staying at a hotel, the more than one hundred stays chosen for this new offer from the company stand out for having their own added value that makes them special. A unique view, different décor, their own history or having been used previously by someone famous are some of the seasons that make them the true stars of NH Hoteles. The Premium Rooms are spread out among 18 of the best hotels of the chain throughout the geography of Spain. The establishments are part of the NH Collection Hotels, which stand out for being unique buildings. Included among these buildings are monuments that have been restored and recovered by NH Hoteles, to newly built facilities, where the most avant-garde design and innovative and advanced services for the guest make them stand out. In addition to choosing the hotel, customers can select a specific room in which the experience of their stay will be completely different and unique. Among the rooms chosen by the chain, NH Hoteles has highlighted one per establishment, being singled out in the special catalogue edited by the company. These rooms represent the best sample of the variety of different destinations and experiences available to the traveller at the hotels of the Spanish multinational company. Rooms with their own charm The Premium Rooms offer the customer a wide range of sensations. In some cases, the unequalled view that is enjoyed from their windows or balconies is their main attraction. For example, room 340 of the NH Obradoiro enjoys an exclusive view of the city of Santiago de Compostela. The uniqueness of the architectural environment is the virtue of a good part of the Premium Rooms. That is the case with room 401 of the NH Palacio de la Merced in Burgos, where the building’s gargoyles are just a few metres away from the room’s windows, or room number 204 of the NH Amistad Córdoba, just in front of the Arab mural in an architectural set that has been masterfully restored. In some cases, having been used by historic personality or celebrities from the world of culture provides special interest in some of the Premium Rooms of NH Hoteles. The offer that the Premium Rooms represent for NH Hoteles provides the customer with a new way of travelling, where lodging becomes the true highlight. Premium Views In 2006, NH Hoteles has edited the Miradas book, with the collaboration of the prestigious writer Espido Freire, winner of the Planet Award, and the well-known photographer Daniel Riera. The intent of the book is to show his personal interpretation of the Premium Rooms and to also tell unique stories.   NH Annual Report 2006 68 Suite del NH Abascal Madrid – Spain

New NH breakfasts NH Hoteles has ascertained that Spaniards tend to follow European trends as far as working lunches. Thus, more and more professionals are including working breakfasts in their agendas. These kinds of meeting offer innumerable advantages and it is already a general practice in a good part of Europe in the USA. This trend has been verified already by the increased demand for this service by the customers of NH Hoteles. Thus, the corresponding sales from breakfasts have increased by 7.4% on average in all of the chain’s hotels, and the company breakfasts alone have increased by 17%. In light of the new trends, and continuing with restaurant service support as one of the pillars of the company, NH Hoteles has designed its new and complete breakfast in 2006. Breakfast – important nutritional value The new breakfast of NH Hoteles has been developed with the assistance of nutritionists and under the guidance of chef Enrique Martinez, a gastronomic consultant for NH Hoteles and the head of the prestigious Maher restaurant in Cintruénigo (Navarra). The new breakfast can now be enjoyed at a wide range of hotels from the chain and will be implemented at all of their spaces gradually. Regarding the new breakfast, Enrique Martinez has increased the offer of juices and fruits, with new cuts and presentations. We have worked jointly with suppliers to ensure that they prepare handmade buns and bread following our recipes on a daily basis. A nutritionally balanced breakfast must contain milk products (provide calcium), cereals (provide carbohydrates and proteins) as well as fruits and vegetables (which contain fibre and vitamins). The NH Hoteles breakfast includes a wide and varied supply of these three main food groups. In addition, it has a selection of other foods, such as: meat products (low fat cold meats, sausages), fats (olive oil, butter), stimulants (coffee, tea, chocolate) etc. The development of a wide variety of recipes has been included among the main new dishes for the NH breakfasts, which will be updated throughout the year, so that our customers may enjoy the latest of the current Spanish cuisine. In addition, the offer of breads has been promoted (rye, German, seeds, nuts, raisins, wholewheat), baked at the hotels.   Some of the main parts to the NH Hoteles breakfast are:   •  Fruit is always served freshly cut and is carefully selected. •  Juices are prepared on the day they are consumed, in order to avoid loss of vitamins. •  New selection of handmade butters and jams prepared by our staff, which are served alongside the traditional ones. •  Hot products are prepared when served according to the customer's specifications.   Support from NH Hoteles for gastronomy is one of the main characteristics of the company, which has numerous agreements with food experts, such as Ferran Adrià, Enrique Martínez and Paco Roncero. NH Annual Report 2006 69

Commercial Agreements During 2006 NH Hoteles signed numerous commercial agreements that provide access to new communication paths, a considerable increase in the market share and strengthen the presence of NH Hoteles as an international company. These associations are laid out within the strategic plans, who is seeking new alliances in its main target markets and on the other hand, allowing to strengthen the relationship with frequent customers. Airlines Among the most prominent agreements is the “AAdvantage” loyalty program of American Airlines, whereby customers who stay at the NH hotels will earn "miles" that can be exchanged for airline tickets, stays at hotels and promotions designed exclusively for the members of the program. “AAdvantage” is the frequent flyer program of American Airlines, one of the oldest and most influential on the international stage. Since July 2006, NH Hoteles has become part of the “Spanair Plus+” loyalty program. The “Spanair Plus+” loyalty program, created in 1996, currently has more than 500,000 members and offers a large number of partners, for both frequent leisure and business flyers. It is slowly positioning itself as one of the programs of choice for flyers in Europe. In addition, the chain has become part of the “Club Premier” loyalty program of Aeromexico. “Club Premier”, created in 1991, currently has more than 2 million affiliates. Finally, one year after the entry of NH Hoteles as an international partner in the "Flying Blue" program of KLM and Air France, the hotel chain is renewing its agreement by incorporating new advantages and promotions for the program members. “Flying Blue” program currently has more than 10 million members and is attempting to become the leading frequent flyer program in Europe. On-line Agencies NH Hoteles announced in February 2006 the new implementation of XML interface with Bookings, one of the leading European companies for online hotel reservations. The interface will allow NH Hoteles to send information automatically on rates and availability to Bookings, without the need for manual intervention. This way, Bookings generates reservations for the hotels through its extensive affiliate network and search facilities. The agreement reinforces the global exposure of NH Hoteles both inside and outside Europe. Rumbo.es, a leading on-line agency in Spain, since July 20006 has been offering the same rates that the hotel chain has available in its own direct distribution channels. This association has been possible through the development of an interface by both companies.   SAVIA Amadeus, a leader in the distribution of tourist reservations and in providing technology for the Spanish travel industry, has reached an agreement with NH Hoteles whereby the hotel chain will offer its best rates on the reservation system, after adhering to its Best Available Rate program. The hotel chain thus pledges to provide the travel agencies, through the Amadeus reservation system, rates that are equal to those available through its own distribution channels. Thanks to the agreements signed with Grupo Transhotel, travel agents around the world can book a room at any NH establishment through the networks of Transhotel - Global Provider of Tourist Services. NH Annual Report 2006 70

NH Annual Report 2006 71 Pool of the NH Constanza Barcelona – Spain