July 9, 2002
MADRID, Spain -- At the nH HOTELS' General Shareholders' Meeting held on Thursday, June 27 in Madrid, company Chief
Executive Officer and President, Gabriele Burgio announced that the company's sales had increased 15% to $322 million
as of May 31, 2002 although the company is still recovering from the economic slowdown of recent months following
the events of September 11th. nH HOTELS is one of Europe's largest lodging groups. Based in Madrid, the company
maintains an impressive portfolio that currently numbers 237 hotels, with more than 34,000 rooms in 18 countries.
An additional 38 new projects currently under construction will add 6,647 rooms. nH recently announced plans to
introduce its brand to the U.S. market with an aggressive, multi-faceted marketing and sales campaign and the establishment
of sales offices in New York, Miami and Houston.
In his address to shareholders, Mr. Burgio also reported that occupancy levels throughout the company's properties
in Spain is at 68%, and close to 64% for nH's properties throughout Europe. Occupancy among similar properties
within the first five months of the year totalled 66%, with RevPar at almost $62. These levels are close to those
reached during the same period in 2001.
Mr. Burgio also stated that one of the company's main objectives is "to complete the re-branding of all nH
hotels by December 2002 while focusing the company's efforts on achieving market leadership in those countries
in which it operates. These efforts will focus on the conversion of the Krystal properties in Mexico and the Dutch
Krasnapolsky properities. We will address the re-branding of the recently acquired Astron hotels throughout Germany
once we complete a market study currently underway."
In response to the company's 2001 results, Mr. Burgio said, "These strong results are primarily due to strategic
national and international expansion efforts that have allowed us to maintain our quality and customer service
standards." Mr. Burgio went on to say, "nH opened 13 hotels last year with more than 1,700 rooms and
acquired nH Mexico, the chain's first business venture in one of Latin America's most important markets."
He also mentioned the recent acquisition of Astron Hotels, a leading company in Germany with 53 hotels and more
than 8,300 rooms.
To provide the company with the financial flexibility to continue on with its aggressive expansion plans, nH shareholders
authorized the company's Board of Directors to approve capital increases as well as convertible securities issues.
Lastly, Gabriele Burgio stressed the importance of merger-driven synergies as part of a cost-savings plan the company
is currently implementing. This plan will enable the chain to save $74.2 million between now and the year 2005.
Thus far, nH has succeeded in realizing an overall savings of $10.3 million.
Key Appointments
nH shareholders approved the appointment of two key Board members at last week's meeting. Alfredo Fernandez Duran
has been appointed to the Board of Directors as a representative for Amancio Ortega, who owns Zara, along with
other businesses. The new nH HOTELS Board Member will serve as Head of Investments of Amancio Ortega's private
portfolio.
Shareholders also ratified the appointment of Bancaja's current Deputy General Manager Aurelio Izquierdo Martinez,
as Bancaja's representative to the Board of Directors, which was effective three months ago.
The shareholders' decision to appoint these top executives representing Bancaja and Amancio Ortega reinforces their
trust and confidence in the management of the nH HOTELS chain. Both entities have recently acquired a 5% share
in nH as confirmed by Spain's National Stock Exchange Commission.
In addition to the new appointments, nH shareholders also approved the Board of Directors' proposal for the merger
of nH HOTELS and the Promociones Eurobuilding, where the chain already held a 98.5% share of ownership.
ABOUT nH HOTELS
The nH HOTELS, (http://www.nh-hotels.com), following the acquisition of the Dutch chain, Krasnapolsky in July 2000,
the Mexican chain Krystal in June 2001 and the German hotel chain, Astron last 25th February, is now Europe's third
ranking business hotel chain. nH operates 237 hotels and 34,179 rooms in 18 countries in Europe, Latin America
and Africa. The recent acquisition of Astron, the third leading city hotel in Germany, has consolidated nH's presence
in Europe. nH currently has 35 new projects under construction that will add close to 6,700 new rooms. nH HOTELS
are famous for the quality of their services and facilities, where great attention has been given to the decor
so that guests may enjoy a comfortable stay. The hotels have the most advance technologies to facilitate its guests'
communications as well as their work and leisure. nH HOTELS attaches great importance to gastronomy. In fact, the
company has reached a collaboration agreement with Ferran Adria, one of the world's most prestigious chefs, with
three Michelin stars, who has launched the new "nhube" concept in nH HOTELS. These spacious areas, a
first in the hotel sector, combine restaurant services, relax and leisure. He has recently introduced "fast-good",
a concept where fast food and the highest quality are made compatible. The nH Group is listed in 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 the leading European companies included in Morgan Stanley Capital International's stock index
(MSCI). nH HOTELS operates under the GDS code of "NS" worldwide. 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.
SOURCE: nH HOTELS