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REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
REPORT ON THE CONSOLIDATED
FINANCIAL STATEMENTS
1.- ACTIVITY AND COMPOSITION OF THE PARENT COMPANY
NH HOTEL GROUP, S.A., formerly NH HOTELES, S.A. (hereinafter the Parent Company) was incorporated as a public limited company in Spain
on 23 December 1881 under the trade name “Material para Ferrocarriles y Construcciones, S.A.”, which was subsequently changed to “Material y
Construcciones, S.A.” (MACOSA) and later to “Corporación Arco, S.A.”
In 1992, Corporación Arco, S.A., took over Corporación Financiera Reunida, S.A. (COFIR), while at the same time adopting the trade name of the
company taken over and amending its corporate purpose to the new activity of the Parent Company, which focused on the management of its
shareholding portfolio.
(COFIR) merged with Grupo Catalán, S.L. and its subsidiaries and Gestión NH, S.A. through the absorption of these companies by the former.
Subsequently, Corporación Financiera Reunida, S.A. (COFIR) took over NH Hoteles, S.A., adopted its trade name and broadened its corporate
purpose to allow for the direct performance of hotel activities, activities in which it had already been engaged indirectly through its subsidiaries.
Information on these mergers can be found in the financial statements of the years in which said transactions took place.
In October 1999, a public take-over bid for 100% of the capital of Sotogrande, S.A. was launched, which has allowed the Company to hold a
permanent controlling interest exceeding 75%.
An essentially European expansion strategy was initiated in 2000 aimed at creating a strong global brand in the urban hotel segment through the
incorporation of the Dutch hotel company “Krasnapolsky Hotels and Restaurants N.V.”, followed by the acquisition of the Mexican company “Nacional
Hispana de Hoteles, S.R.L. de C.V.” in June 2001 and the purchase of the German hotel company “Astron Hotels” in 2002.
Between 2003 and 2005, the Group’s organic growth allowed it to enter different European markets, such as Italy and Romania, as well as new cities
such as London. It also entered the quality tourist sector, with a significant real estate component in 2005 with projects in Cap Cana (Dominican
Republic) and the Mayan Riviera (Mexico).
After consolidating the acquisitions made in previous periods, the Group continued with its international expansion strategy in 2007 and 2008
through the acquisition of the Italian hotel chains, Framon and Jolly Hotels.
The Group entered into an agreement with Grupo Inversor Hesperia, S.A. (hereinafter “Hesperia”) in 2009 to merge their respective hotel management
businesses. As a result, the Group now manages 49 hotels owned or operated by Hesperia. The Group currently manages 34 hotels belonging to
Grupo Inversor Hesperia.
The Parent Company is the head of a group of subsidiaries engaged in the same activities and that constitute, together with NH Hotel Group, S.A.,
the NH Hotels Group (hereinafter the “Group” – see Appendices I and II).
At the end of 2014, the Group was operating hotels in 28 countries, with 363 hotels and 57,127 rooms, of which around 79% are located in Spain,
Germany, Italy and Benelux.
The General Shareholders’ Meeting of 26 June 2014 agreed to change the company’s name from “NH Hoteles, S.A.” to “NH Hotel Group, S.A.”
NH Hotel Group, S.A. has its registered address in Madrid.
2.- BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS AND
CONSOLIDATION PRINCIPLES
2.1. Basis of Presentation of the Financial Statements
The consolidated financial statements for 2014 were drawn up by the directors of NH Hotel Group, S.A. at the Board meeting held on 25 March
2015, in accordance with the regulatory reporting framework applicable to the Group, as established in the Code of Commerce and all other Spanish
corporate law, and in the International Financial Reporting Standards (“IFRS”) adopted by the European Union in accordance with Regulation (EC)
No. 1606/2002 of the European Parliament and in Law 62/2003, of 30 December, the Tax, Administrative, Labour and Social Security Measures
Act, and as such give a true and fair presentation the Group’s equity and financial position at 31 December 2014 and of the results of its operations,
changes in equity and consolidated cash flows for the year then ended.
NH Hotel Group, S.A. (formerly NH Hoteles S.A.) and Subsidiaries Report
on the Consolidated Financial Statements for 2014
