The Group income increases 10.7%, and the EBITDA 36.7% to €92.9 million in the first half of the year.
Implementation of the divestment plan launched last year has continued throughout 2011, with 90% of the plan complete. An initiatives plan has been implemented to contain costs and improve efficiency
NH Hoteles aims to complete the agreement with HNA Group by the end of the year

(MZ) The main figures for NH Hoteles as of 30th June 2011 show a recovery on the Group’s 2010 results. The Group achieved a net result of €22.5M, against losses of (40M) year on year for the same period.
NH Hoteles achieved a total income of 715.4 Euros in the first half of 2011, which means a 10.7% increase year on year.
The efforts implemented by the Company in terms of cost containment and strengthening of the sales network, amongst other things, allowed the group to generate an EBITDA of €92.9 million, an increase of 36.7% on June 2010.

Relevant facts for the first half of 2011
During the first half of 2011, NH Hoteles redesigned its operations and sales structures in order to improve management and sales process efficiency in some of its business units. As part of this move, the “Germany” and “Central and Eastern Europe” business units were merged into a single business unit, now known as “Central Europe”. Furthermore, a new business unit was created – “Resorts Europe”-, which includes hotel resorts that the company is currently running in Italy and Spain.
The implementation of new income management tools, both centrally and in a considerable number of hotels within the chain, is resulting in both the strengthening of the management structures, with better alignment of the sales structures and the incorporation of new managers in this role. Mikael Anderson, as Chief Commercial Officer, Emilio Consiglieri, as Revenue Management Director and the future incorporation of a new Sales Director.

Furthermore, the 2015 initiatives plan has been launched and affects the entire organisation, aiming to increase sales and improve process efficiency and the quality of customer service. The strategic focus of these initiatives are boosting on-line sales channels (such as mobile applications or the drive towards participation in social networks as new sales channels) and reducing energy costs.

Reduction in debt by the sale of assets
Implementation of the divestment plan launched last year has continued throughout 2011, with 90% of the plan complete which amounts to €273M.
The most important divestments have been both the agreement reached with Costes group in March for the sale of 33% of the holding company of hotel Lotti in Paris and the Artos deal, which affected eight hotels in Germany and two in Austria overall.
Company debt has been reduced to €1,079M as of 30th June 2011, down from €1,116M as of 31st March 2011, due to the generation of cash flow achieved during the second quarter of this year.
At the end of March, an action plan was launched for the entire organisation focusing on the optimisation of the corporate structure and containment of general costs. During the first half of 2011, this resulted in an increase of costs of €19M. Without this non-recurring expense, EBITDA would have increased a 64%.

NH Hoteles aims to complete the agreement with HNA Group by the end of the year
On 15th July, NH Hoteles and HNA Group agreed to extend the term for fulfilment of the condition precedent (administrative authorization), to which the capital increase was subject to (under the terms of the agreement signed in May) until 28th October 2011. In addition, given the need to extend the terms and as a sign of their mutual commitment, the companies have agreed on a guarantee system.
Both companies continue working on the Joint Venture which purpose is to manage hotels in China and expect the first Chinese tourists to NH Hoteles during the last quarter of the year.

Hotel activity: Increases in RevPar (revenue per available room) in all business units
At the end of the semester, occupancy figures have reached 64%, an increase of 4.7% vs. the same period 2010. The Americas and Spain stand out with a growth of 8% and 5.2%, respectively.
All business units recorded increases in RevPar, with Benelux up 12%, Central Europe up 8.4% and The Americas up 13% showing the best performance. Both Benelux and Italy business units successfully improved efficiency, tackling greater sales with very good cost containment.
It is worth noting that the number of business customers has increased in many of the main cities where NH Hoteles is present. Barcelona and Valencia in Spain, Milan in Italy, Amsterdam in The Netherlands, Brussels in Belgium, Düsseldorf and Nuremberg in Germany and Mexico City showed a considerable increase in business customers and a rise in the organisation of trade fairs and events.

New hotels
During the first half of 2011, six new hotels with 816 rooms were opened and one existing hotel was extended to include 48 additional rooms.
Amongst the hotels opened over the first six months of 2011, of particular note are two hotels in Turin with 240 and 140 rooms respectively, for which a management agreement was signed at the end of last year, and the opening of the NH Ribera del Manzanares hotel in Madrid, with 224 rooms.
The Hesperia WTC Valencia hotel (Venezuela), which opened its doors during the last quarter of 2010, with 32 rooms, has opened a further 48 rooms. Once work has been completed, the hotel will have a total of 323 rooms.
Additionally, one operating hotel in Castellar de la Frontera, Cádiz, with 74 rooms, has been opened. Lastly, in May, a second hotel was opened in Algeciras and in June a hotel was opened in Frankfurt under a lease contract.
By incorporating these hotels, NH Hoteles currently operates 400 hotels with 59,109 rooms in 24 countries in Europe, America and Africa.

Environment – Consumption and emissions
NH Hoteles regards the Environment as an issue of strategic interest. The Company has an environmentally-friendly and sustainable approach throughout the business cycle, from the tasks of planning, designing and constructing hotels to day-to-day operations and the service it offers its customers.
In 2008, the Strategic Plan for Sustainability and Energy Efficiency 2008-2012 was launched, which is based on determining the impact of the chain on the environment and setting targets for the reduction of energy and water consumption, CO2 emissions and the generation of waste. This plan will allow the chain to reach the target for the European Union’s 20-20-20 Plan four years in advance.
The ratios* analysed by customer and by room night continue to show a notable decrease in both consumption and emissions. Energy consumption has dropped by 11% on last year and five of the six business units have lowered their energy consumption by more than 10%. In addition to the results already achieved in water consumption efficiency, in the first half of this year, water consumption was reduced by 5.8% on 2010.

*Consolidated urban hotels
The total savings in the measurement of the production of waste are published annually.

About NH HOTELES
NH Hoteles (www.nh-hotels.com) currently ranks third among European business hotels. The Company operates 400 hotels with 59,109 rooms in 24 countries in Europe, America and Africa. NH Hotels currently has 20 projects for new hotels under construction, which will provide around 3,000 new rooms.
NH Hoteles is listed on the Madrid Stock Exchange.