MANAGEMENT MODEL

NH Hotel Group carries out its hotel activity by creating shared value at the economic, social and environmental level wherever it is present.

Responsible Commitment Plan 2017-2019 ROOM 4

In 2017, with the aim of leading responsible commitment in the industry, the Corporate Responsibility Strategic Plan 2017-2019 was approved, establishing the main objectives and initiatives for the different responsible commitments defined by the Company in its Corporate Responsibility Policy.

In defining the Plan, the United Nations Sustainable Development Goals (SDG) were linked for the first time to the strategic lines. Furthermore, with the “Room 4” concept, these goals were aligned to the business of NH Hotel Group and its key stakeholders.

The Plan, which accompanies the Group’s global strategy, includes its main commitments regarding responsibility, as well as the development of the lines of action in priority areas for the Company: commercial, employee engagement, investment, brand purpose, corporate governance and supplier evaluation.

Pillars of the Plan

NH Hotel Group has defined a clear purpose for its Responsible Commitment Plan:

The Corporate Responsibility Plan comprises three pillars of action: People, Planet and Responsible Business.

Organization and management

To achieve the goals set out in the Responsible Business Plan, the Company established a management model, coordinated at corporate level with the business units, that lets the responsible commitments defined be implemented and monitored.

This approach also contains a cross-cutting communication plan for the visibility of the actions carried out; an organizational structure that drives the actions with leading players throughout the Company; and indicators to monitor compliance in the main programs.

The Board of Directors is responsible for monitoring the evolution of and compliance with the NH Hotel Group Corporate Responsibility Policy.

In turn, the Nominations and Remuneration Committee is in charge of promoting the implementation of and compliance with the Corporate Responsibility Policy and Plan, which is designed and executed by Company Management.

Throughout 2018, work has continued on the lines defined in this Plan and, furthermore, a new Corporate Responsibility strategy, one of the pillars of the Group’s Strategic Plan, has started to be

designed following the acquisition of 94.1% of the share capital of NH Hotel Group by Minor International. Both companies have started to work on defining a new five-year Plan, aimed at taking advantage of the complementary nature of the two business models.

2018 is therefore a year of transition: work continues on the commitments acquired in 2017, while work starts on developing the alignment of the NH Hotel Group’s Sustainable Development model with Minor’s model.

Materiality Analysis

The analysis of relevant issues for the business and for stakeholders or materiality analysis is a key part of the Corporate Responsibility management process, both in reporting and in defining the strategy, initiatives and relations with stakeholders.

In 2018 NH Hotel Group has updated the analysis in order to define the contents of this Report and prioritize the relevant matters, based on
the Materialty Study for 2017. This process has been carried out in different phases:

Identification

Material matters have been identified based on an analysis of internal and external sources that have made it possible to determine a preliminary list of relevant matters for NH Hotel Group and for its stakeholders.

Subsequently, a semantic review of the matters has been carried out with the aim of linking similar concepts or areas and integrating them in the terms of NH Hotel Group and the hotel sector’s business approach. The matters have been grouped according to the three pillars of the Responsible Commitment Plan 2017-2019 Room4: Business, People and Planet.

Prioritization

Material issues have been prioritized based on two variables:

• Impact on the Business: Importance of each matter in the Company’s business activity, taking into account the strategy of NH Hotel Group, the trends in the sector, prescribers in the sector and on sustainability, and the evaluation of the Company’s Corporate Responsibility Area.

• Impact on Stakeholders: Importance of each matter among the different stakeholders based on available information of NH Hotel Group, social trends and concerns, the United Nations Sustainable Development Goals
–SDG–, and discussions of these matters in the media.

Validation and Materiality Matrix

The prioritization has been validated internally by the Corporate Responsibility area of NH Hotel Group, by checking the relevance of material matters and theirweight in relation to the business objectives.

With this prioritization, the Materiality Matrix has been drawn up for the Corporate Responsibility Report 2018, according to the two relevance guidelines: for the activity of NH Hotel Group and for its stakeholders. All material issues identified have a relevance of more than 30%.