The “Subordinated loans to companies owning hotels operated by the Group through leases” item includes a series of loans granted by the Group to companies which
own hotels in countries such as Germany, Austria, Luxembourg, the Netherlands, Italy and Spain, and which are operated by the Group under a leasing agreement.
These transactions, which are mainly aimed at refinancing and reducing rents, are currently being used for the Group’s growth. The main features of these agreements
are as follows:
-
Hotel rents are not subject to evolution of the inflation rate or to that of any other index.
-
The above-mentioned subordinated loans accrue interest at a fixed rate of 3% per year (EUR 2.23 million in 2013 and EUR 2.21 million in 2012).
-
New rental agreements establish a purchase right on properties subject to agreements that, as a general rule, may be executed in the fifth, tenth and fifteenth year
from the entry into force of the agreement.
-
The model used for these rental agreements has been analysed and independent experts consider them to be operating leases.
“
Other Collection Rights” includes the claim filed against the insurance company that underwrote the ten-year building works insurance. The amount claimed
corresponds to the repair works performed and yet to be carried out on a housing development belonging the subsidiary Sotogrande, S.A. (please refer to Note 26).
“
Other Loans” includes the loan granted to the owner of the NHow Rotterdam hotel, operated on a management basis, which accrues a fixed annual interest rate of 3%.
The “Lease advance payments” item includes advance payments made to the owners of certain hotels operated under a rental scheme for the purchase of decoration and
furniture; these are discounted from future rental payments.
Also, in 2012, EUR 17,428 thousand was recognised as a balancing entry for the promissory notes provided to the owners of several leased hotels (Note 18).
11.2
Other non-current financial investments
This item of the consolidated balance sheet comprised the following interests valued at cost at 31 December 2013 and 2012:
Thousand euros
2013
2012
Hotelera del Mar, S.A. (Note 10)
-
3,151
NH Panama
3,767
3,539
Others investments
6,072
5,547
Provisión Hotelera del Mar, S.A. (Note 10)
-
(421)
Other provisions
(2,107)
(2,108)
Total
7,732
9,708
These companies were not consolidated at 31 December 2013 as they were inactive on such date.
12.-
INVENTORIES
The composition and movements for this item of the consolidated balance sheet at 31 December 2013 and 2012 was as follows in both years:
Balance at
31/12/11
Changes in
the scope of
consolidation
(
Note 2.5.5)
Additions Retirements
Net
Changes in
Inventories
Balance at
31/12/12
Additions
Net
Changes in
Inventories
Balance at
31/12/13
Developed land
46,558
-
-
-
-
46,558
38
-
46,596
Undeveloped land
10,697
-
-
-
-
10,697
-
(157)
10,540
Finished works
27,097
5,642
-
-
(6,160)
26,579
-
(59)
26,520
Ancillary materials and
others
8,367
-
-
-
649
9,016
-
(53)
8,963
92,719
5,642
-
-
(5,511)
92,850
38
(269)
92,619
Impairment
-
(2,098)
(5,764)
1,127
-
(6,735)
(6,249)
-
(12,984)
Net value
92,719
3,544
(5,764)
1,127
(5,511)
86,115
(6,211)
(269)
79,635
REPORT ONTHE CONSOLIDATED FINANCIAL STATEMENTS
80
