4
Messages from the Chairman and CEO
I am pleased to introduce the Company’s 2012 Annual Report, which outlines NH Hoteles’
performance along the economic, environmental and social dimensions last year and
introduces the events taking place in the early part of 2013.
Last year was marked by an especially adverse economic environment that was
particularly unfavourable in the main markets where the Company operates. For this
reason, NH Hoteles went to significant lengths to adapt its organisational structure to
this reality and to secure the refinancing of its debt.
Towards the end of the year, the Group articulated a new corporate governance
model, designed to enable more efficient oversight of the Company’s highest-level
management and governance duties, while facilitating the focus on a more productive
business management.
In relation to 2013, we are working intensely to make the Group more solvent so that it
can service all its commitments, finance its business plan and reinforce a growth strategy
designed to place NH Hoteles in a global leadership position. Along these lines, I am
pleased to inform you of the effective investment by the HNA Group, a benchmark
international shareholder and business partner. Our strategic alliance with HNA will
translate into business opportunities for NH in the years to come.
I would like to thank all of our shareholders, partners and customers for their support
and the confidence they have placed in the Company’s new direction. Also my thanks
to all of the Company’s employees in a complex year, whose constant commitment and
hard work is crucial for NH’s future.
Lastly, in light of the changes in the composition of the Board of Directors in the early
months of 2013, on behalf of the Company I would like to specially thank our outgoing
directors and welcome the newcomers.
Rodrigo Echenique Gordillo
Chairman of NH Hoteles
Since joining the Company at the end of 2012, I have had the chance to see the Group’s
performance first hand and come to understand its strengths and enormous potential.
Despite the adverse economic climate prevailing last year, the Company continued to
show its ability to innovate and respond to new guest demands, rolling out free Wi-Fi
access worldwide in the rooms and communal areas of all the Group’s hotels.
Against this backdrop, due to current uncertainty and out of a sense of responsibility,
NH Hoteles decided to recognise a series of impairment charges that resulted in a
particularly bad earnings performance. These charges however will allow us to rise to
the challenges to come from a more realistic position.
Keenly aware of the effects of the prevailing recession, all of the Company’s teams are
working with intensity, rigour and enthusiasm to add value to our strengths. A broad and
diversified portfolio of hotels with prime locations in top destination markets, a varied
service offering and a committed and motivated team. These are the bases on which we
are building the new NH.
Our vision is that whenever anyone contemplates a trip to a city for an overnight stay
or meeting, for business or pleasure, they first ask themselves: “Is there an NH Hotel?”
NH aspires to be the “top 2 choice” for city/business travelers, offering a different
product and service experience.
The roadmap for achieving our goals entails the re-launch of the NH brand and its
hotel portfolio by building well-defined product segmentation; revising the portfolio to
adapting it into the current and future needs; reinventing the consumers’ experiences
and solutions; reinforcing the online sales channels; improving our management tools
to make us more competitive; and, lastly, specifying where the Company wants to be
and in what form.
I would like to thank everyone who is in any way related with our Group. Thanks
to your commitment, especially of the employees who have displayed exemplary
dedication and constant effort, we are working hard to add value to the Company
in 2013 by transforming NH Hoteles into a unique experience of which we can all
feel proud.
Federico González Tejera
CEO of NH Hoteles
CEO
CHAIRMAN
