NH HOTELS, ONE OF EUROPE’S LARGEST AND FASTEST GROWING HOTEL GROUPS, ANNOUNCES...

NH HOTELS, ONE OF EUROPE’S LARGEST AND FASTEST GROWING HOTEL GROUPS, ANNOUNCES PLANS TO TARGET THE NORTH AMERICAN MARKET



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— nH HOTELS currently has 237 hotels with more than 34,000 rooms in 18 countries; 38 new projects in the pipeline will add 6,647 rooms

— Miami and Houston sales offices established to target the Latin American market and Mexico where the company maintains 24 properties

— nH sets its sights on a worldwide roll-out of the nH brand in all countries where the chain operates

— nH HOTELS experiences record growth achieving a 38.5% increase in total revenue in 2001 over the previous year and a five-fold increase in number of rooms within the past 5 years, from 6,900 to more than 34,000

Madrid, Spain–(HISPANIC PR WIRE)–JUNE 11, 2002–With a growing international recognition for innovation in property operation, acquisition and development, nH HOTELS, one of Europe’s largest lodging groups, has launched ambitious plans to gain prominence with the North American international business traveler. The new marketing campaign is a key element of a $7 million (US) re-branding initiative, following major property acquisitions, including the Dutch chain Krasnapolsky Hotels, the Mexican chain Krystal and Germany’s Astron Hotels. The objective is to convert these to the nH brand in all the countries where the chain operates. The Madrid-based company’s impressive portfolio currently numbers 237 hotels with more than 34,000 rooms in 18 countries. An additional 38 new projects under construction that will add 6,647 rooms.

nH HOTELS, known for their creative approach to décor, gastronomy, and technology, is the leading hotel chain for business travelers in Madrid, Barcelona, Valencia and Amsterdam, and the second most popular hotel brand in Brussels. The chain also has locations in other leading European, Latin American and African business and financial capitals including Buenos Aires, Düsseldorf, Lisbon, Mexico City and Sao Paolo.

The recent acquisition of Astron (February 2002), the third leading metropolitan hotel in Germany, has expanded nH’s presence in Europe, while the acquisition of Mexico’s Krystal hotel chain in June ’01 has provided nH with a strong presence in one the U.S.’s key international markets.

nH HOTELS has experienced record growth in revenue, achieving US$716 million (€762 million) in 2001, a 38.5% increase over the previous year, with net income at US$77 million (€81.7 million). The chain’s total number of rooms has also grown five-fold within the past five years.

nH is listed on the Madrid (part of the selective IBEX 35) and Amsterdam (Euronext) stock exchanges. nH HOTELS is also a member of Stoxx Europe 600, which includes leading European companies. nH is also included in Morgan Stanley Capital International’s stock index (MSCI), and is traded on the New York Stock Exchange within the ADR (American Depository Receipts) program level one.

“The nH HOTELS brand has been built by consistently offering guests a high level of quality in both service and style,” said Gabriele Burgio, President and Chief Executive Officer, nH HOTELS. “We have noticed a significant increase in the number of Americans traveling to Europe and to our hotels, and consequently the number of room nights by American business travelers staying at our hotels has increased three-fold in the first quarter of 2002 compared to the same period of 2001. American clients are discovering our properties and are pleased with the service, quality and convenient locations of our hotels. These satisfied customers are in fact, among our highest repeat guests. With our re-branding activities and recent acquisitions in leading international cities, the timing is right to create a better understanding and awareness of the nH HOTELS product with the business traveler and corporate travel planner in the North American market.”

nH HOTELS attributes its success to several factors: a focus on the corporate travel and meetings market; commitment to detail in every aspect – from technology to service; its “homogeneous” philosophy and approach to each nH HOTEL worldwide — no big differences, no big surprises; and most importantly, its full corporate ownership and management of its properties which protects and maintains the integrity of the brand.

Recently named “2002 Company of the Year” by the Spain-US Chamber of Commerce in Miami, nH HOTELS, which opened its first hotel in Madrid in 1981, has experienced tremendous growth within the past six years, specifically revenue increases of 640% and operating profit increases of 918%. Hotel revenues grew to US$640 million in 2001, an increase of 44.4% over the previous year. Revenues in Brazil, Argentina, Uruguay and Chile were US$14.6 million in 2001, a rise of 86% over 2000, while Mexico reached US$26 million in revenue. The company has established sales offices in Miami and Houston, in addition to New York, to aggressively grow these markets, which currently represent 12% of the company’s property holdings.

The system-wide consolidation of all acquired properties under the nH HOTELS name, scheduled for completion by year’s end, will not only redefine the company’s image but, according to company management, provide a platform for outreach to the U.S. corporate travel market about its high quality, but as yet low profile brand. New actions, under corporate auspices and the direction of the company’s U.S. sales offices in New York, Miami and Houston, include a first-ever advertising, public relations and direct marketing program as well as increased trade show participation and cross-country sales missions.

nH HOTELS, which operates under the GDS code of “NS” worldwide, maintains three distinct product categories – “nH”, “nH Collection” -a line of luxury hotels converted from landmark buildings with high-end amenities and features, and “nH Comfort” -properties offering nH’s high standards at competitive rates.

nH HOTELS’ properties are tastefully appointed with designer furnishings and vanguard art. Guests are offered a choice of pillows at check-in and specially appointed rooms are available for the woman executive traveler. Three-time Michelin star chef Ferrán Adrià, who signed a collaborative agreement with nH HOTELS, brings innovation to nH’s culinary offiering, developing new cuisine concepts.

In collaboration with nH HOTELS management, Adrià helped create a new restaurant/multi-function concept called “nHube”. These attractive areas fuse comfort and efficiency with color and modern furniture arrangements to create spaces for guests to relax, eat, meet with colleagues, surf the Internet or listen to music. Ferrán Adriá recently launched the “fast-good” food concept whereby busy travelers can enjoy quality fresh and healthy food served in a timely and efficient manner. Adolfo Dominguez, meanwhile, is responsible for the stylish uniforms worn by guest service staff and Jesus del Pozo created the fragrances and personal care items available in the in-room bath kit. A total of 10 Michelin Stars have been awarded to NH Hotels´ restaurants and its collaborators in recognition of the chains´ efforts in offering the best in gastronomy. These 10 stars are as follows: three stars for Ferrán Adrià; three for Martín Berasategui; one for Enrique Martínez (culinary advisor of nH); one for Jesus del Ferro; one for the restaurant of El Casino de Madrid – managed by nH HOTELS; one for The Vermeer Restaurant-The NH Barbizon Palace´s restaurant in Amsterdam. nH HOTELS is the only chain to receive these many distinctions.

Another hallmark of nH HOTELS is its established supremacy in technology. Following comprehensive development and testing, all guest rooms are being outfitted with a proprietary high-speed Internet access system that does not require computer reconfiguration and is the fastest of its kind now available. For meetings and conferences, nH HOTELS offers a wide range of communications aides, from videoconferencing and satellite communications, to simultaneous translation in the well-appointed meeting rooms available at most nH HOTELS. For reservations and booking information, call +34 913-984-400 or visit online at http://www.nh-hotels.com. For group sales and corporate travel agent assistance, call 1-800-232-9860.

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CONTACT:

Rosalie Huerta

M. Silver Associates Inc.

305/533-1111

or

María Cortina (nH Communication Director)

Madrid, Spain

34 91 451 9762

34 91 451 9718 (Main)

NH HOTELS, ONE OF EUROPE’S LARGEST AND FASTEST GROWING HOTEL GROUPS, ANNOUNCES PLANS TO TARGET THE NORTH AMERICAN MARKET