In addition to its subsidiaries, associates and joint ventures, the Group’s “related parties” are considered to be the “key management personnel” of the Parent Company (Board Members and Directors, along with their immediate relatives), as well as organisations over which key management personnel may exert significant influence or control.

Transactions carried out by the Group with its related parties during the year are stated below, distinguishing between major shareholders, members of the Board of Directors and Directors of the Parent Company and other parties that were related during the year even though there are no longer a shareholder at year-end. The conditions of the related-party transactions are equivalent to those of transactions carried out under market conditions:

The heading “Management or cooperation agreements” referring to major shareholders includes the amounts that have accrued in the form of management fees payable to NH Group in the financial year by virtue of the hotel management agreement signed with Minor Group.

 

Related party balances

At 31 December 2020, the NH Hotel Group has a net balance pending collection of 342 thousand euros with the Minor Group (955 thousand euros recorded as an account receivable and 613 thousand euros as accounts payable).

In the 2019 financial year, as a result of the analysis of the fair value of the company’s holding recorded as an asset available for sale, a provision for impairment was recorded of the loans receivable from associated companies of 9,503 thousand euros and an expense of 5,588 thousand euros for the contribution undertaken to be made to the company at the close of the 2019 financial year, to carry out cancellation of the bank loan held by it and in which NH Hotel Group acted as guarantor for 35.5%. Both impacts were recorded as “Impairment on financial investments” on the consolidated comprehensive profit and loss statement.