13.1 Financial assets at fair value with change in profit/loss
The breakdown of this heading is as follows:
In regard to the fair value of financial assets, it does not differ significantly from its cost.
13.2 Other financial assets at amortised cost
The breakdown of this heading is as follows:
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, 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 aforementioned subordinated loans accrue interest at a fixed rate of 3% per annum.
- 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. These hotels are covered by the scope of IFRS 16 and, therefore,
from the transition date involve recording a right of use asset and a leasing liability.