Italy: a tailor made market for NH Hoteles 7 NH Annual Report 2006 41
During 2006, NH Hoteles signed an agreement whereby it would take control of the Jolly Hotels and Framon Italian chains, becoming the leading hotel chain in Italy. With these two operations, the Company adds 67 hotels to its portfolio with 9,682 rooms, including open and signed. Jolly Hotels In November 2006, NH Hoteles came to an agreement whereby it would take control of the first Italian chain, Jolly Hotels. The integration of Jolly Hotels into the Italian subsidiary of NH Hoteles stands out due to the existing complementary nature between both companies, as far as the customer profile, services offered, strategic urban locations and full geographic coverage. For NH Hoteles, the agreement has meant the consolidation of its leadership in the business segment in Europe and being the company of reference in the Italian market. Jolly is present in 7 countries with 46 hotels and 7,555 rooms, of which 3,238 are owned. It Italy it owns 39 hotels with 5,993 rooms in the main cities of the country (Rome, Milan, Turin, etc.),which due to their tourist attraction provide a stable addition for completing the business segment. In addition, Jolly Hotels has a presence in the most important European capitals, such as: London (275 rooms), Berlin (255), Cologne (217 rooms), Amsterdam (218 rooms), Brussels (193) and Paris (162). Jolly Hotels also has a 242-room hotel in the middle of the financial and tourist district of New York.   The experience and strategy of development and expansion of Jolly Hotels, a company listed in the Italian stock market, have consolidated the hotel chain as the main hotel company over the last years for the business segment of the country, with a growing development of the convention segment. In order to perform the operation, the new company "Grande Jolly" was created, with NH Hoteles holding a majority stake with 51%, and in which the company Joker Partecipazione initially also holds a stake of 42% (which held 50.1% of Jolly Hotels), and Banca Intesa Sanpaolo with 7%. Later, “Grande Jolly” launched a Public Tender Offer at € 25 per share on the 25% in hands of minority shareholders. Since January 2007, majority control of Jolly Hotels is held by NH Hoteles and its results have been moved to be consolidated with those of the Spanish Company on February 1st. NH Hoteles has broad experience in the acquisition of hotel chains in Europe and Latin America, which allows it to rapidly integrate Jolly Hotels into the NH Hoteles portfolio. Framon Over the past period, NH Hoteles came to an agreement to acquire Framon, the fifth largest hotel company in Italy by the number of establishments. Framon, with 15 hotels and 1,254 rooms, has a significant presence in Sicily, one of the main tourist destinations with the greatest potential in the Mediterranean, in addition to the strategic locations in cities of the Italian Peninsula, such as Milan, Rome, Florence and Venice, among others. The Framon chain hotels are recognised for their leadership in the market segment of the areas where they are found. Many of them occupy excellent historical buildings located in strategic locations. In addition, the Italian chain has six magnificent resorts, among which is the outstanding Gran Hotel Timeo de Taormina (Sicily), a historical hotel from 1873 that enjoys wonderful views of the sea and an exceptional Greek theatre.     Leadership in Italy For NH Hoteles, these operations have meant reaching a position that allows it to lead the anticipated process of concentrating the fragmented Italian hotel market, in addition to reinforcing its presence in the main European capital cities and entering into two new markets, such as New York and Paris. NH Annual Report 2006 42
NH Annual Report 2006 43 Jolly Hotel Villanova Bologna – Italy Aerial View of the Gran Hotel Timeo Taormina – Italy Lobby of the Hotel Parco degli Aragonesi Catania – Italy Gran Hotel Verdi Milan – Italy Hotel Crystal Trapani – Italy Pool of the Dioscuri Bay Palace Agrigento – Italy
NH Annual Report 2006 44 Cagliari Trapani Palermo Messina Agrigento Syracuse Catania Rome Caserta Naples Salerno Turin Milan Bergamo Brescia Parma Genoa La Spezia Pisa Siena Florence Bologna Ravenna Ancona Venice Trieste Vicenza Ischia Lecco Rapallo Marsala Caltagirone Brucoli Taormina Jolly: 87 Jolly: 115 Jolly: 172 Framon: 44 Jolly: 365 Jolly: 84 Jolly: 152 Framon: 115 Jolly: 88 Jolly: 107 Jolly: 104 Jolly: 96 Framon: 153 Jolly: 186 Framon: 123 Framon: 59 Jolly: 100 Framon: 91 Jolly: 120 Framon: 102 Framon: 48 Framon: 70 Jolly: 237 Jolly: 129 Jolly: 194 Jolly: 231 Jolly: 999 Jolly: 129 Jolly: 100 Jolly: 110 Framon: 86 Jolly: 283 Jolly: 368 Jolly: 112 Jolly: 1,175 Framon: 100 Jolly: 88 Framon: 161 Jolly: 62 Valderice Framon: 102 NH HOTELES IN ITALY Hotels Open Rooms Projects Internal Development 3 750 From January 1st, 2007 Jolly 39 5,993 11 Hotels; 1,543 Rooms Framon 15 1,254 TOTAL ITALY (March 2007) NH Italy 57   7,997 11 Hotels; 1,543 Rooms CONTRIBUTION OF ROOMS FROM JOLLY HOTELS AND FRAMON IN ITALY: 7,247 ROOMS
NH Annual Report 2006 45 Pool of the Hotel Tonnara Di Bonagia Valderice – Italy Jolly Hotel Ligure Turin – Italy Gran Hotel Bristol Rapallo – Italy Lobby of the Anglo American Hotel Florence – Italy Jolly Hotel President Milan- Italy Terrace of the Venus Sea Garden Resort Brucoli – Italy
NH Annual Report 2006 46 Façade of the Jolly Hotel Lotti Paris – France
NH Annual Report 2006 47 Jolly: 162 Jolly: 275 Jolly: 193 Jolly: 218 Jolly: 472 France United Kingdom Belgium The Netherlands Germany Jolly: 242 United States CONTRIBUTION OF ASSETS FROM JOLLY HOTELS AND FRAMON HOTELS ROOMS TOTAL CONTRIBUTION OF OPEN HOTELS - JOLLY HOTELS 46 7,555 TOTAL CONTRIBUTION OF OPEN HOTELS - FRAMON 15 1,254 TOTAL CONTRIBUTION OF OPEN HOTELS - JOLLY HOTELS AND FRAMON 61 8,809 TOTAL SIGNED HOTELS - JOLLY HOTELS AND FRAMON 6 873 TOTAL CONTRIBUTION OF OPEN AND SIGNED HOTELS FROM JOLLY HOTELS AND FRAMON 67 9,682 CONTRIBUTION OF ROOMS FROM JOLLY HOTELS IN EUROPE (EXCLUDING ITALY): 1,320 ROOMS CONTRIBUTION OF ROOMS FROM JOLLY HOTELS NORTH AMERICA: 242 ROOMS