Page 9 - Consolidated Financial Statements and Management Report

The result of these policies is reflected in the increase in overall customer ratings in 2013, which grew from 8.1 in 2012 to 8.2 in 2013, on a scale of 1 to 10. The results
indicate that the most highly valued elements of the chain, in addition to location, are service and cleanliness, with scores of over 8.4; both concepts are directly related
to the result of the employees’ performances, which is the result of the NHHoteles Group’s customer-orientated philosophy.
Other significant events in 2013 include the Company’s restructuring process upon inclusion of theHNAGroup (EUR234million) in the share capital, which continued
in June with the sale of the NH Grand Hotel Krasnapolsky (EUR 142 million). Also, at the end of October the refinancing of most of the Group’s debt was successfully
completed through a Club Deal (EUR 200million) and a convertible bond (EUR 250million) and fixed-rate bond (EUR 250million) issue in capital markets totalling
EUR 700 million. This new, more flexible debt structure allows adaptation of debt maturities to asset repositioning investment needs.
At 2013 year-end, the Board of Directors approved the NH Hotel Group’s five-year strategic plan, all the initiatives are focused on four key priorities for the coming
years: materialising a clear segmentation of its hotels under a new umbrella brand; designing a new value proposition to improve customer satisfaction; driving brand
recognition by promoting its communication; and optimising its management and organisational capabilities, particularly those relating to technology systems.
The implementation schedule for the initiatives under the strategic plan to build the new NH is being meticulously carried out. Some of the main measures currently
being implemented include the renovation of hotels, the launch of the loyalty programme, the redefinition of the price strategy, the migration of systems and the rotation
and optimisation of assets.
The consolidation of the Spanish hotel sector’s first purchasing platform, Coperama (fully owned by NHHoteles), continues to growwith the acquisition in 2013 of 159
new establishments and the expansion of the purchase areas, adding to the already consolidated F&B (Food & Beverage) and OSE (Operating Supplies & Expenses)
areas. A new area was introduced in 2013, FF&E (Fixtures, Furniture & Equipment). The total number of suppliers with purchase agreements amounted to 338.
In the first half of 2013, Coperama presented a new electronic catalogue to its customers, “My Coperama Store Center”, a tool that converts the search for products into
purchase orders, expediting the purchasing process and optimising communication between customers and suppliers through technology, as well as “Electronic Billing”,
which will enable suppliers to issue electronic invoices to all the establishments free of charge, thus eliminating the use of paper.
In 2013, the NH Hoteles Group was awarded the Tripadvisor Excellence Prize for quality; Agenttravel Prize awarded to the best hotel chain in terms of quality/price
ratio, best city hotels and best business hotels in Spain; Second place in the Ranking of America’s Top Companies; Best Company to Work For in the tourism sector,
according to the MERCO Ranking; Innovation Prize to the Human Resources Department, awarded by Expansion&Empleo; Prize for the best advertisement for
Welcome to the NHWorld”, awarded by Inspira; Oracle Prize for business relations awarded by Oracle to the e-Commerce Department for the best Mobility Project,
awarded by Fundación Dintel; GBTAOutstanding Achievement Award for its sustainable measures, Green Supplier in theMICE Segment Prize awarded by IMEX and
GMCA, Civic Responsibility”Prize awarded by the German Government, Green Key Gold Prize of the Environmental Organisation awarded to the Benelux Business
Unit.
The individual prizes awarded to our hotels include the Tripadvisor Excellence Certificate awarded to NH Gran Hotel Provincial, NH Atlantic, NH Puebla, NH
Guadalajara, NH Santa Fe, NH Centro Historico, NH Museum Quarter, D´Vijff Vlieghen Restaurant, NH City Centre, NH 9 de Julio, NH Tango, NH Latino, NH
Crillon, NH Jousten, NHMonterrey and other 84 hotels in Spain. Green Star Diamond Prize and Best Resort Prize awarded to the NH Almenara hotel; Most Popular
Hotel in the Dominican Republic Prize and Dominican Ecoservices Prize awarded to the Secrets Royal Beach Punta Cana Hotel, prize awarded to the NH Jan Tabak,
NH Atlantic and NH Schiphol Airport hotels for being among the 25 best hotels in the Netherlands, awarded by Zoover Award, M Badge awarded to the NH Centro
Histórico hotel by Tourism of Mexico, 4 Diamonds Prize to the NHGuadalajara Collection hotel awarded by the American Automobile Association, Quality Assurance
Prize awarded by MLT Vacations to the Secrets Royal Beach Punta Cana hotel, RCI Gold Crown Resort Prize awarded by RCI to the Now Larimar and Secrets Royal
Beach Punta Cana hotels, Vermeer Restaurant, elected the 25th best restaurant in the country by Lekker magazine and awarded 17 Gaultmillau points by Gault&Millau
and one Michelin star, NHMarquette awarded the NTBOMark Prize by the GermanWedding Planning Industry (NTBO), Best Maître Prize awarded to the Hesperia
Madrid hotel by the Gourmet Club, Best Sommelier Prize awarded to La Terraza del Casino byWineMarket &Distribution, Golden Seal Prize awarded by theWedding
Industry to the NH Palacio Castellanos, NH Parque Avenidas and NH Príncipe de la Paz hotels.
In 2013, the Group was included in the prestigious FTSE4Good sustainability index. This index includes listed companies fromaround the world and is designed to help
investors to integrate factors such as the environment, stakeholder relations, human rights and labour in their investments.
CONSOLIDATEDMANAGEMENT REPORT
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