at 31 december 2006 and 31 december 2005 (Euros 000s) NH Consolidated financial statements 2006 12 NH HOTELES, S.A. AND DEPENDENT COMPANIES Consolidated annual accounts for 2006 prepared in accordance with International Financial Reporting Standards adopted by the European Union. Translation of consolidated financial statements originally issued in Spanish and prepared in accordance with IFRSs, as adopted by the European Union. In the event of a discrepancy, the Spanish language version prevails. CONSOLIDATED BALANCE SHEETS ASSETS Note 31.12.2006 31.12.2005 NON-CURRENT ASSETS: Tangible fixed assets 8 1,433,644 1,408,314 Goodwill 6 114,402 113,586 Intangible assets 7 59,258 59,397 Holdings in associated companies 9 91,433 92,728 Long-term financial investments- 443,316 116,917 Loans and accounts receivable not available for trading 10.1 397,451 94,481 Other long-term financial investments 10.2 45,865 22,436 Advance taxes 21 34,639 35,868 Other non-current assets 1,324 3,998 Total non-current assets 2,178,016 1,830,808 CURRENT ASSETS: Inventories 11 109,673 96,902 Trade debtors 12 126,888 130,356 Non-trade debtors 38,592 27,894 Tax receivables 21 16,194 13,527 Other non-trade debtors 22,398 14,367 Short-term financial investments - 207,969 27,844 Financial assets held to maturity 13.1 207,586 26,621 Negotiable financial assets 13.2 383 1,223 Cash and banks and other cash equivalents 14 42,369 18,039 Other current assets 12,985 10,947 Total current assets 538,476 311,982 TOTAL ASSETS 2,716,492 2,142,790

NH Consolidated financial statements 2006 13 NET EQUITY AND LIABILITIES Note 31.12.2006 31.12.2005 NET EQUITY: Share capital 15.1 263,197 239,066 Reserves of the Parent Company 15.2 293,102 287,548 Reserves in fully consolidated companies 15.3 235,130 150,317 Reserves in proportionally consolidated companies 15.3 412 468 Reserves in companies consolidated using the equity method 15.3 7,624 8,651 Equity valuation adjustments 15.4 2,100 4,772 Translation differences (5,899) 17,821 Own shares 15.3 (3,504) (301) Consolidated profit for the year 62,448 62,243 Net equity attributable to shareholders of the Parent Company 854,610 770,586 Minority interests 15.6 176,678 119,682 Total net equity 1,031,288 890,268 LONG-TERM LIABILITIES: Issue of debentures and other marketable securities 57 83 Debts to credit institutions 16 529,577 592,871 Creditors under finance leases 17 122 316 Other long-term liabilities 18 346,156 81,335 Provisions for liabilities and charges 20 50,280 42,999 Deferred taxes 21 99,125 124,438 Total long-term liabilities 1,025,317 842,042 CURRENT LIABILITIES: Issue of debentures and other marketable securities 38 25 Payable to credit institutions 16 349,756 136,829 Creditors under finance leases 17 251 399 Trade creditors and other accounts payable 22 218,943 169,394 Other current financial liabilities 1,319 1,130 Tax payables 21 26,549 26,787 Provisions for liabilities and charges 20 5,652 7,892 Other current liabilities 23 57,379 68,024 Total current liabilities 659,887 410,480 TOTAL NET EQUITY AND LIABILITIES 2,716,492 2,142,790 Notes 1 to 30 of the Report and Appendices I/III form an integral part of the consolidated balance sheet at 31 December 2006. The consolidated balance sheet at 31 December 2005 is presented solely for purposes of comparison.