83
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
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.
The main features of these agreements are as follows:
- Hotel rentals 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 (€2.36 million in 2014 and €2.23 million in the preceding
year).
- New lease 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 lease agreements has been analysed and independent experts consider them to be operating leases.
The “Other collection rights” item reflects the claim filed against the insurance company that underwrote the ten-year construction insurance. The
amount claimed corresponds to the repairs made and pending in a housing development. This claim was left out of the 2014 sale agreement for
Sotogrande, S.A., the company which first presented the claim (see note 2.5.4).
“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 consists of advance payments made to the owners of certain hotels operated under a lease arrangement for
the purchase of decoration and furniture; these are discounted from future rental payments.
11.2 Other Non-Current Financial Investments
This heading of the consolidated balance sheet comprised, at 31 December 2014 and 2013, the following equity interests, valued at cost:
€Thousand
2014
2013
NH Panamá
3,767
3,767
Other investments
4,525
6,072
Other provisions
(1,587)
(2,107)
Total
6,705
7,732
These companies were not consolidated at 31 December 2014, since they were inactive on said date.
12.- INVENTORY
This item of the consolidated balance sheet was as follows at 31 December 2014 and 2013, including movements during both years:
Balance at
31/12/2012 Additions Net Changes
in Inventories
Balance at
31/12/2013
Transfers
(Note 9)
Net Changes
in Inventories
Balance at
31/12/2014
Developed land
46,558
38
-
46,596
(46,596)
-
-
Undeveloped land
10,697
-
(157)
10,540
(10,540)
-
-
Finished works
26,579
-
(59)
26,520
(26,520)
-
-
Ancillary materials and others
9,016
-
(53)
8,963
(362)
(375)
8,226
92,850
38
(269)
92,619
(84,018)
(375)
8,226
Impairment
(6,735)
(6,249)
-
(12,984)
12,984
-
-
Net value
86,115
(6,211)
(269)
79,635
(71,034)
(375)
8,226
The transfers record the inventory of the companies classified as assets available for sale and then disposed of in the contract removing Sotogrande,
S.A. from the scope of consolidation (see note 9).
