84
10.- NON-CURRENT FINANCIAL INVESTMENTS
10.1 Loans and accounts receivable not available for trading
The breakdown of this item at 31 December 2015 and 2014 is as follows:
Thousands of euros
2015
2014
Subordinated loans to companies owning hotels operated by the Group through leases (*)
41,879
46,740
Accounts receivable in respect of put option for Sotocaribe (Note 2.5.4)
58,250
58,250
Other collection rights
16,395
16,395
Other loans
18,212
17,230
Lease advance payments
3,279
3,535
Loans to associates (Note 24)
672
-
Long-term deposits and sureties
13,396
12,789
Others
1,988
3,920
Total
154,071
158,859
*These loans accrue an average rate of interest of 3% to 4.89%
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 (2.40 million euros in 2015 and 2.36 million euros in the
preceding year).
- 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 the Los Cortijos de Sotogrande housing development.
“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.
10.2 Other non-current financial investments
This heading of the consolidated balance sheet comprised, at 31 December 2015 and 2014, the following equity interests, valued at cost:
Thousands of euros
2015
2014
NH Panamá
3,767
3,767
Other investments
3,200
4,525
Other provisions
(262)
(1,587)
Total
6,705
6,705
These companies were not consolidated at 31 December 2015, since they were inactive or insignificant on said date.
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
