Messages fromthe Chairman and CEO
6
I ampleased to present the 2013 Annual Report as part of our transparency commitment
to all our shareholders, consumers, employees and society in general. Our intention with
this report is to provide insight into our performance and showcase the value created
from the economic, environmental and social dimensions in a year which marked a
turning point in the Company’s history.
Although it is still too early for the milestones achieved last year to have an impact on
earnings, NH Hotel Group’s strategic positioning has improved considerably since the
start of the year, thanks to renewed financial health and a more flexible and favourable
financing structure, on the one hand, and the potential implicit in the business plan being
deployed in order to boost the Group’s productivity, on the other.
Having increased the Company’s liquidity and solvency by issuing equity to one of our
main shareholders, HNA, while making progress on the asset restructuring effort, the
Group successfully placed plain and convertible bond issues which, coupled with the
new syndicated loan obtained, have articulated a borrowing structure in line with our
business plans.
With the Company’s financial equilibrium definitively restored and having secured the
funds needed to tackle an ambitious and necessary five-year business plan - rollout of
which is being meticulously executed - the Group’s credibility improved substantially
over the course of the year.
The achievement of all these milestones, the market’s approval of the new strategy
and decision-making agility, thanks to the renewed shareholder structure, have caught
the interest of the investor community, which today sees NH Hotel Group as a leading
international player.
This is the newNH: solvent, renovated and credible. All of which without wavering on
its commitment to sustainability and solidarity, as is clearly shown in the initiatives
undertaken on the corporate social responsibility front, which are outlined inside
this report.
I would like to take this opportunity to thank our shareholders, partners and customers
for their trust in the management team and in all our employees. I would like to
specially congratulate our professionals for their hard work and their dedication to the
transformation of NHHotel Group.
Rodrigo Echenique Gordillo
Chairman of NHHotel Group
CHAIRMAN
2013
was a very important year for NH Hotel Group. After a profound analysis of the
Company, we have defined a vision that marks the path to follow, who we are and the
values that inspire us, clearly shaped by our passion for service. We have established our
global operational promise to consumers, whether at an NH Collection, an NH Hotel, a
nhow or an Hesperia.
All of this under the umbrella of a five-year business plan designed to overhaul the
Company with a view to transforming it into an urban and business hotel group of
reference at international level. This plan is the result of a clear and specific vision,
which unites us all and that places the Company’s focus on a common ambition, namely
that one day, whenever anyone contemplates a trip to a city for an overnight stay or
meeting, for business or pleasure, they will always ask themselves: “Is there an NH
hotel at my destination?”.
With this ambition guiding us, we set out to face the challenges of a business plan built
around four major areas that include all the deliverables which the management team
has committed to: revenue, margin improvement, growth and enhanced management
and organisational capabilities. Each is supported by specific initiatives and rigorous
methodologies which we are executing meticulously.
We are focused on increasing revenue growth and this entails a new value proposition,
an improved guest experience, finding the right way of selling and communicating our
promise and a portfolio of quality hotels that meet consumer expectations. Because we
will only succeed if we win over their trust.
We have already embarked on this journey to fulfil our objectives. The fact that NH is
back in action, with renewed energy and a solid plan for the future, has been greeted
enthusiastically by the investment community.
We want to be a global company at all levels, a benchmark in our key operating markets,
characterised by a consistent culture, a team of extraordinary professionals, efficient
systems and unique solutions. We are beginning to leverage these strengths and the
market will acknowledge this fact in the short term.
We have a great future ahead of us, a great brand and a group of professionals committed
to delivering a superior and memorable experience. We are going to provide what we
promise. When we tell consumers that we are passionate about service, they will sense
it for themselves. When we tell them we are going to enhance their experience during
their stay, they will experience it. And when we tell them we are going to make them feel
special, they will feel special.
I would like to thank everyone who has trusted in the new NH for their enthusiasm and
support. Together we are going to achieve that shareholders, investors and consumers
alike always choose NH as their destination.
Many thanks,
Federico González Tejera
CEO of NHHotel Group
CEO
