The breakdown and movements under this heading were as follows (in thousands of euros):
The main recognitions for the year are due to the opening of several hotels on a lease basis. The openings of the NHOW Amsterdam Rai in the Netherlands and the NH Collection Palazzo Verona in Italy were noteworthy.
Likewise, the change in the scope includes the acquisition of the Boscolo Hotels Group through the companies Roco Hospitality Group S.R.L., New York Palace, Kft. and Agaga, S.R.O.; hotel leasing operators in Italy, Hungary and the Czech Republic (Note 6).
The main impacts on the statement on the consolidated comprehensive profit and loss statement related to the application of IFRS 16 are a higher financial expense of 94,106 thousand euros (89,620 thousand euros in 2019), a net gain of the disposal of non-current assets of 624 thousand euros (positive net gain of 1,044 thousand euros in 2019), due mainly to cancellations of contracts that had no cash impact and asset impairment of 4,333 thousand euros (impairment reversal of 2,175 thousand euros in 2019).
The amounts recorded as right-of-use assets correspond to properties where the NH Group is a lessee for its operation as a hotel.
Short-term leases and low-value leases are recognised as an expense in the consolidated comprehensive profit and loss account on a straight line basis. A short-term lease contract is one where the period is less than or equal to 12 months. A “low value contract” is one whose underlying asset assigned in use would have a new value of under 5 thousand euros. The impact recorded on the attached consolidated comprehensive profit and loss statements for the leases totals an income of 31,374 thousand euros (Note 26.4). This income is a result of applying the exemption introduced in IFRS 16 on 28 May 2020, which meant the Group recorded 46,195 thousand euros (Note 2.2).
Furthermore, in the lease agreements, there are no restrictions or imposed clauses and no sales transactions with subsequent leasing were carried out during the financial year.
Future cash output that the lessee is potentially exposed to, and which are not shown in the valuation of leasing liabilities, exclusively relate to payments for variable leasing.
Therefore, future gross payments estimated for the next 5 years total 391 million euros. Nevertheless, these expenses will result in higher income and produce higher profits.
The Group has not granted any options to extend and terminate, or guarantees of residual value. There does exist a lease that has not commenced, for which the Group has undertaken gross lease payments of 437 thousand euros in a period of 2 to 5 years, and 6,833 thousand euros in a period of over 5 years.