SALES AND RESULTS JANUARY-SEPTEMBER 2004 Q3

Hotel business - highlights:

§ RevPar at comparable European hotels improved by 1.8% in the third quarter of 2004, such that RevPar for the first nine months of the year was practically flat on the January ­September period in
2003.

§ Hotel occupancy improved across the board in all NH Hoteles' markets.

§ A significant improvement in occupancy in Benelux in the third quarter (3.5 pp in Amsterdam and 12.2 pp in Brussels) helped push up RevPar in comparable hotels by 3%.

§ A clear recovery in prices and a significant improvement in occupancy levels in Germany: RevPar at comparable hotels grew by 10.4% in the third quarter of 2004.

§ A recovery in occupancy levels and prices in Latin America, although the exchange rate effect is still negative.

§ Progress in the cost-savings plan: in the year to date, cost-savings at comparable hotels have reached 29m. Overall, at comparable and non-comparable hotels, operating costs per occupied room have fallen by 7.4%.

§ Current borrowing levels are 24% lower than at 30th September 2003, at 509.3m, including dividend payments and the cancellation of some of Krasnapolsky's preference shares.

Real Estate business - highlights:

§ New historic high: at 20th September, confirmed sales not yet included in the accounts reached
88.39m, 54% higher than the 57.48m reported at 30th September 2003.

§ The Ribera del Marlin project posted confirmed sales of 18.5m. The project is a 50/50 JV with
PonteGadea will be developed between 2004 and 2007.

§ The sale of one very large plot in April 2004 made an EBITDA contribution of 19.6m