Letter from the President During the first quarter of 2007, and pursuant to the realization of our first Annual Report, NH Hoteles has brought its system of sustainability management up to date through a process of internal involvement of all areas of the company provided by relationships with different stakeholders -shareholders, employees, clients, suppliers, communities in which we operate and organisations and foundations- as well as the environment. We have pinpointed our focus on responsibility and sustainability as a growth opportunity, consolidation and innovation in line with the creation of shared benefit. We want to influence the responsible value that hotel activity has on our societies and on their economic and social development at the local, national and international levels. This responsible value, which is intrinsic to hotel activities, is evidenced first in the creation of direct stable employment, as well as the generation of indirect employment. Our industry per se is also an excellent manager of the diversity part and parcel with working in tourism and hospitality. Understanding diversity and knowing how to manage it with respect to both clients and human resources forms part of one of NH Hoteles' finest activities as an expanding global company. Consequently, the expression of our responsibility in the internal sphere centres on the promotion of policies of diversity, conciliation and equality, and we are proud of the harmonious coexistence of 114 different nationalities among our staff, where women represent 53.5% of the total and 33% of executive positions. In Spain's case this representation in executive positions for women rises to 51% of the total Hotel Directors.   Another of our goals is the training, management and development of talent, since people are the engine of growth that carries forward into development, benefiting not only our clients but all of society and the communities where we operate. Environmental management is an area in which our contribution must be more obvious by minimizing the environmental impact generated by hotel activity. We depend on a sustainable vision through the entire business cycle from the very outset, with design and construction of hotel buildings based on a unique management system (“NH Benchmark”), which allows optimising the surface for construction by rationalising the use of a scarce resource and achieving an important energy savings as a result. All of this comes combined with the rational use of natural resources, promoting renewable energies and the introduction of accessibility criteria. This environmental focus also extends to our hotel maintenance, where we introduce energy-saving management systems for day- to-day affairs and try to offer services and products with this efficient management of resources in mind. It becomes increasingly more relevant to sensitise our employees to environmental behaviours within the NH Hoteles training plan. Unquestionably, 2006 has been a decisive year for the advancement of responsibility and sustainability at NH Hoteles, when it was decided to create an Corporate Responsibility Corporate Area, highly relevant to the organizational structure, and reporting directly to the President and Board of Directors. This is the area responsible for designing and implementing a Strategic Responsibility Plan to integrate all the policies, programs, actions and initiatives of responsible value that the company carries out. It inspires other new ones and sets objectives and indicators, allowing us to improve our integrated business management and accountability in that way. NH Hoteles aspires to continue improving in its responsibility and sustainability as an engine of development and a tool to face the social and environmental goals set for us by a global world. We will then achieve becoming the hotel chain of reference by integrating and responding to the expectations of all our stakeholders in the most complete manner possible. Gabriele Burgio Executive President of NH Hoteles IT IS MY GREAT PLEASURE TO INTRODUCE OUR FIRST CORPORATE RESPONSIBILITY ANNUAL REPORT. THIS REPORT IS AS MUCH A PUBLIC ACCOUNTABILITY OF OUR ECONOMIC, SOCIAL AND ENVIRONMENTAL EFFORTS DURING 2006 AS THE EXPRESSION OF OUR COMMITMENT TO THE INTEGRATED MANAGEMENT OF RESPONSIBILITY IN ALL OUR ACTIVITIES AND RELATIONSHIPS. NH Corporate Responsibility 2006 5 Gabriele Burgio President of NH Hoteles