Consolidated Financial Statements and Management Report - page 67

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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. (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.
During the 1998 financial year, (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%.
In the year 2000, an expansion strategy was launched in order to create a strong global brand in the urban hotel sector.
This strategy has led to acquisitions in recent years for the Group in diverse European and Latin American markets. In the year 2015 it completed the
acquisition of the Colombian hotel chain Hoteles Royal (see Note 2.5.4).
Furthermore, the Group entered into an agreement with Grupo Inversor Hesperia, S.A. (hereinafter “Hesperia”) in 2009 to merge their respective
hotel management businesses, subsequently managing 49 hotels formerly owned or operated by Hesperia. The Group currently manages 32 hotels
belonging to Grupo Inversor Hesperia.
In 2015 the Group expanded its presence in Latin America with the acquisition of the Hoteles Royal hotel group, which operates a portfolio of twenty
hotels: fifteen in Colombia, four in Chile and one in Ecuador. The hotels located in Colombia and Ecuador are operated under a variable income lease,
while of the hotels in Chile, three are operated as owners and as a variable lease, though the latter has ceased operations in the November 2015.
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 2015, the Group was operating hotels in 33 countries, with 378 hotels and 58,655 rooms, of which around 73% are located in Spain,
Germany, Italy and the Benelux countries.
The General Shareholders’ Meeting of 29 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 2015 were drawn up by the Directors of NH Hotel Group, S.A. at the Board meeting held on 25 February
2016, 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 2015 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 2015
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