NH HOTELES’ OPERATING FIGURES CONFIRMS THIRD-QUARTER TURNAROUND. The improved momentum announced in July has gathered pace during the third quarter, with all business units posting growth in revenue per available room (RevPAR)
The measures taken to streamline the organisation are tangible in the decline in costs, all the more significant in light of volume growth and the effort to absorb inflationary pressure. Like-for-like EBITDA in the recurring hotel business registered year-on-year growth of 7.4% in 3Q13. The Board of Directors of NH Hoteles has approved the five-year business plan designed to capitalise on the group’s resources
The convertible bond and senior notes issues, coupled with the new syndicated loan arranged, have
endowed the company with a debt structure that is proportionate to its needs and paves the way
for the imminent rollout of its strategic business plan
Madrid, 22 November 2013. Today NH Hoteles presented its results for the first nine months of the year. During
this period, the company witnessed positive trends in the metrics that track the performance of the hotel business,
with all markets registering growth in like-for-like revenue per available room (RevPAR) in the third quarter for
consolidated year-on-year growth of 1.7%. The momentum gathered over the course of the year is evident in the
trend in this metric: RevPAR declined year-on-year in 1Q13 (-1.4%) and, albeit to a lesser extent, in 2Q13 (-0.3%),
moving into positive territory between June and October; indeed this yardstick sustained year-on-year growth in
each of July, August, September and October.

At total revenue level, the group registered a year-on-year decline of 2.8%, due mainly to the deconsolidation of
non-core hotels (over 1,000 rooms in 9M13), as well as changes in the regime under which other hotels are
operated. Despite the fact that prices stabilised during the third quarter, the still markedly adverse first-half
performance accounts for the bulk of the decline in revenue in the nine-month period.
The healthy trend in occupancy in 2013, meanwhile, up 2.87%, has virtually fully offset the drop in average room
rates, so that RevPAR remains broadly flat year-on-year.
The group’s ability to generate recurring earnings momentum is evident in the initiatives undertaken to align
available resources with prevailing demand in the various markets and in the effort to pare back lease expense,
driving a decrease in costs in 9M13 despite the increase in business volumes and the effort made to absorb
inflationary pressures. It is worth noting that, thanks to the cost-cutting measures implemented, which cushioned
the bulk of the topline contraction, like-for-like recurring EBITDA rose by 7.4% year-on-year in the third quarter of
the year.
Lastly, the group’s bottom line improved by 79.3% year-on-year in 9M13, with the net loss narrowing by €40m
compared to the year-earlier figure.
Trend in by business unit
Central Europe was once again the group’s fastest-growing division, driven by a sharp increase in occupancy, which
more than offset a slight decline in average prices, due in part to the absence of the DRUPA trade fair in Dusseldorf,
which takes place every four years and was last held in 2012. Nearly all the German cities registered high occupancy
levels, with the growth in RevPAR in Munich standing out. Moreover, the provisional results coming in foreshadow a
positive fourth quarter.
Italy, meanwhile, registered substantial growth in occupancy in 9M13, enough to drive positive growth in RevPAR
year-to-date. This business unit stands out for having presented the best cost-efficiency figures within the group,
having cut operating expenses by 2.5% and lease expense by 6.9%.
Spain, despite remaining the business unit most affected by the macroeconomic climate, managed to post year-onyear
EBITDA growth of 102%, essentially thanks to the host of austerity measures rolled out. Earnings momentum at
this business unit continues to improve as the year unfolds. Barcelona continues to significantly outperform other
city destinations where business volumes remain depressed.
Benelux was the group’s top-performing business unit in 3Q13, with Amsterdam posting a stellar performance
marked by double-digit RevPAR growth. This healthy third-quarter performance partially mitigates the negative
first-half performance registered by this business unit.
Latin America was the best-performing unit in terms of 9M13 revenue, underpinned by healthy growth in
occupancy (+6%) and growth in revenue in the food and beverage segment (+14.5%), all of which more than offset
the adverse impact of the weak Argentine peso, which depreciated 20% year-on-year. The outlook for the third
quarter is upbeat in both Argentina and Mexico.
Real estate

The most significant development affecting the group’s real estate business relates to an accounting change: the
effectiveness since 1 January 2013 of IFRS 11 Joint Arrangements eliminates the option of accounting for jointlycontrolled
entities such as Residencial Marlin and Alcornoques de Sotogrande using the proportionate consolidation
method, requiring their consolidation under the equity method. This change in accounting treatment has a
significant impact on 2013 revenue as these companies’ contributions to the topline are no longer included within
revenue in the consolidated income statement.

The real estate business posted revenue of €8.73m in 9M13, compared to €15.03m a year earlier. In the first nine
months of 2013 the unit signed deeds on 12 apartments in Residencial Marlin at an amount of €2.3m*, compared to
a total of 14 homes for an amount of €6.56m in 9M12.
(*) This revenue is not included under Real Estate Revenue in the consolidated income statement due to the change in International Financial
Reporting Standard 11, Joint Arrangements.
Factoring in the change in accounting criteria in both periods, revenue would have increased by 3%, which is
equivalent to €0.25m.
Earnings highlights for the NH Hoteles group for the nine-month period ended 31 September 2013:
(€ million) 2013/2012
Greenlight for NH Hoteles’ business plan
The Board of Directors has approved the group’s 5-year business plan, which is designed to transform NH hotels
into consumer’s top choice by leveraging its strengths and redefining the customer-centric experience. The plan is
articulated around the construction of a new guest value proposition, brand redefinition via clearer and more visible
segmentation of the hotel portfolio, improved business management capabilities and the definition of a strategic
international development that fits with the group’s interests, among other initiatives. In parallel, the chain expects
to deliver margin expansion by transforming its customer loyalty and relationship model.
Successful culmination of the business plan financing process
NH Hoteles is poised to start to execute its business plan having fully refinanced its debt. The debt restructuring
process announced at the end of last October has culminated with the issuance of three financial instruments
specifically selected to articulate the new financial structure.
The company has closed and received payment for a €250 million issue of senior secured 6-year notes (due
November 2019) that carry a coupon of 6.875%.
It has also closed and received the proceeds from an unsecured €250 million convertible bond issue. The bonds are
convertible into or exchangeable shares and mature in five years (November 2018); they carry a fixed annual
coupon of 4% and the conversion price is €4.919 per NH Hoteles share.
In addition, NH Hoteles has secured a new 4-year €200 million syndicated loan (due November 2017) with a
variable interest rate equal to quarterly Euribor plus a 4% margin.
Thanks to these transactions, which add €700 million of new financing, NH Hoteles has fully repaid the March 2012
syndicated loan and other financial obligations and has put in place a new and more flexible financial structure that
provides it with sufficient funding, including cash on hand, for investing up to €200 million in the new strategic
initiatives contemplated in its business plan.
About NH Hoteles
NH Hoteles (www.nh-hotels.com) is Europe’s third-ranked business hotel chain. It operates close to 400 hotels with
almost 60,000 rooms across Europe, the Americas and Africa, including top destinations such as Berlin, Madrid,
Amsterdam, Paris, London, Rome, Bogota, Mexico City and New York. NH Hoteles is traded on the Madrid stock
exchange.