Brand awardness 13 NH Annual Report 2006 77

NH Hoteles is already one of the most recognised brands in Europe. In line with the European expansion carried out during the last 5 years by the chain to position itself among the main urban hotel chains, the visibility of the firm has not stopped growing until it has become an indisputable reference company within the hotel industry. According to a full study carried out by the Ikerfel market research and strategic marketing institute, in which the brand position has been analysed in the European countries where it was present during the year 2003 (Spain, Germany, Austria, The Netherlands and Belgium), the users demonstrated a clear knowledge of the firm. For Germany, The Netherlands, Belgium and Austria, Spain is the first answer when the respondents are asked for other countries where they believe NH Hoteles is present, which shows the brand’s identification with its market of origin. On the other hand, a large majority of those consulted are capable of recognising the company from among the rest of the hotel sector competitors, placing it among the first ones mentioned when asked about a hotel company located in their country. A reference company in the European hotel sector The data collected by Ikerfel analyses the movement of main indicators regarding brand recognition over the last three years. In this period, the growth of NH Hoteles has been spectacular in every sense, reflecting not only the growing presence of the firm in the European market, but also its notoriety, vivacity and dynamic nature, which have made it into one of the most recognized national companies outside of Spain. Despite the fact that the European expansion of NH Hoteles began just six years ago, at this time the visibility of the firm has increased remarkably. The suggested recognition of the brand, which measures its ability to be identified amongst a broad list of hotel market companies, reflects this situation. All through in Spain and in Germany, Austria, Belgium and The Netherlands, this indicator is above 50% of the population. If in Spain it is already 97%, in Holland it has gone from 44% to 70% in just three years, and in Germany it reaches 68%, while at the end of 2003 it was only 26%. As far as the spontaneous preference of the brand, i.e. the percentage of the population that names NH Hoteles as the first company when asked to list hotel sector companies in their country, the Group is among the first three options in all countries analysed. NH is the leader in Spain (43%) and in Germany (10%), and is the third most named option in Austria (5%), Belgium (6%) and The Netherlands (10%). It is worth noting the increase experienced in Germany and Belgium, where this indicator was only 3% and 2%, respectively, at the end of 2003. The results from this section show the current status of the company and its ability to be present in the minds of the users. For them, its visibility is above that of local companies and international chains with a long tradition. NH Annual Report 2006 78 Total brand recognition (list of suggested brands) Country Spain Germany Austria Belgium The Netherlands 2003 2006 2003 2006 2003 2006 2003 2006 2003 2006 Percentage 93% 97% 26% 68% 33% 53% 26% 54% 44% 70% First top of mind mentioned Country Spain Germany Austria Belgium The Netherlands 2003 2006 2003 2006 2003 2006 2003 2006 2003 2006 Percentage 39% 43% 3% 10% 3% 5% 2% 6% 7% 10%

The results regarding the brand awareness, which indicates the percentage of respondents who name NH Hoteles spontaneously among their first options, are also very positive for the company. In Spain, NH Hoteles is the first option in the mind of the consumers (70%), way above Sol Meliá (56%) and AC Hoteles (26%), which hold the following places in this section. In The Netherlands, NH Hoteles is already holds the third place with 22%, only exceeded by large brands such as the Hilton and the local Golden Tulip, although it beats the percentage of chains such as Novotel, Mercure or Holiday Inn. The growth experienced in Belgium, where it has gone from 13% to 29% is also noteworthy, as well as the brand growth in Germany, where it is recognised spontaneously by 25% of the market. NH Annual Report 2006 79 Brand awareness (spontaneous mention of the NH Hoteles brand among others) Country Spain Germany Austria Belgium The Netherlands 2003 2006 2003 2006 2003 2006 2003 2006 2003 2006 Percentage 72% 70% 7% 25% 6% 14% 13% 29% 16% 22% The loyalty index, which measures the percentage of people that by preference stay at the establishments of a hotel chain that they have used previously - and choose that option before any other - illustrates the ability of NH Hoteles to satisfy its customers and retain them against the offers from the competition. The chain holds the first place in this ranking in Spain (43%). NH Hoteles is also the leader in The Netherlands (58%) and Germany (32%) where the market is very fragmented. In Belgium it is second, with 50% and holds the fifth place in Austria with a significant 31%. Brand loyalty Country Spain Germany Austria Belgium The Netherlands Percentage 43% 32% 31% 50% 58% Davis Cup: the best platform for our brand In 2006, the International Tennis Federation and NH Hoteles signed the extension of the sponsorship agreement between the international hotel chain and the Davis Cup until 2009. NH Hoteles has been the sponsor of the Davis Cup since 2004 and since then the annual competition has been an excellent presentation of our company to more than 130 countries. •  26% Hilton •  15% Marriot •  15% Sheraton/Arabella •  10% NH Hoteles •  9% Holiday Inn •  7% Le Meridien Pan-European*: Belgium, Germany, The Netherlands, United Kingdom, Italy, Spain and France Source: Business Development Research Counsuelors, Pan-European Guest Survey, 2006 0 5 10 15 20 25 30 PAN-EUROPEAN INDEX OF BRAND SELECTION PREFERENCE (SEGMENT: BUSINESS)