Report on year ended December 31, 2015 for NH Hotel Group, S.A. 1 Table of Contents Summary consolidated financial statements ............................................................................1 Information regarding forward-looking statements ................................................................7 Presentation of financial and other information ....................................................................10 Other data ..................................................................................................................................12 Recent developments ................................................................................................................15 Risk factors ................................................................................................................................16 Management’s discussion and analysis of financial condition and results of operations ..46 Changes to accounting policies and new accounting standards ...........................................71 Business ......................................................................................................................................73 Management ..............................................................................................................................83 Shareholders ..............................................................................................................................88 Description of certain financing arrangements ......................................................................89 Certain definitions ....................................................................................................................99 2 Summary consolidated financial statements This report is the report required under the indenture governing the senior secured notes (the “Notes”), dated as of November 8, 2013 (the “Indenture”) for the year ended December 31, 2015. Please see “Certain definitions” for other defined terms used herein. Summary consolidated statement of profit or loss and other comprehensive income For the year ended December 31, 2013 2014 2015 (€ in millions) Net turnover .......................................................................................................................... 1,260.5 1,247.0 1,376.6 Other operating income ........................................................................................................ 1.8 3.3 1.2 Net gain (loss) on disposal of non-current assets .................................................................. 2.1 (1.0) (0.8) Procurements ........................................................................................................................ (72.9) (67.3) (67.6) Personnel expenses ............................................................................................................... (396.1) (373.8) (398.1) Depreciation allowance......................................................................................................... (106.4) (98.5) (106.2) Net losses from asset impairment ......................................................................................... 31.4 12.8 30.9 Variation in the provision for onerous agreements ............................................................... 6.6 14.7 19.0 Other operating expenses ...................................................................................................... (721.1) (720.0) (787.1) Profit (loss) from entities valued through the equity method................................................ (8.1) (1.3) (0.7) Financial income ................................................................................................................... 4.2 7.4 5.2 Change in fair value of financial instruments ....................................................................... 9.6 2.0 4.7 Financial expenses ................................................................................................................ (77.5) (68.8) (73.7) Net exchange rate differences ............................................................................................... (7.8) — 2.1 Gain (loss) on disposal of financial investments .................................................................. 40.9 17.3 4.8 Pre-tax profit (loss) from continuing operations .............................................................. (32.8) (26.3) 10.3 Corporation tax ..................................................................................................................... (5.5) (15.6) (13.1) Profit (loss) from continuing operations ........................................................................... (38.3) (41.9) (2.8) Profit (loss) for the year from discontinued operations net of tax ........................................ — 31.5 6.1 Profit (loss) for the financial year ...................................................................................... (38.3) (10.4) 3.3 Non-controlling interests ...................................................................................................... 1.6 (0.9) 2.4 Profit (loss) attributable to shareholders of the Issuer .................................................... (39.8) (9.6) 0.9 1 Summary consolidated statement of financial position As of December 31, 2013 2014 2015 (€ in millions) Assets Tangible fixed assets ..........................................................................................................................1,715.0 1,606.4 1,724.2 Intangible assets ................................................................................................................................169.8. 172.8 238.1 Non-current investments ....................................................................................................................196.7 183.4 177.4 Other non-current assets ....................................................................................................................199.3 168.9 182.1 Total non-current assets ..................................................................................................................2,280.8 2,131.5 2,321.8 Non-current assets classified as held for sale .....................................................................................— 95.2 45.0 Inventories .........................................................................................................................................79.6 8.2 9.5 Receivables ........................................................................................................................................180.1 205.8 242.4 Cash and cash equivalents .................................................................................................................133.9 200.1 77.7 Other current assets ............................................................................................................................13.0 20.2 14.5 Total current assets ..........................................................................................................................406.5 529.5 389.1 Total assets ................................................................................................................................2,687.4....... 2,661.0 2,710.9 Shareholders’ equity and liabilities Shareholders’ equity ........................................................................................................................1,158.0 1,136.7 1,126.1 Debentures and other marketable securities .......................................................................................458.3 464.0 471.9 Debts with credit institutions .............................................................................................................321.3 268.9 336.2 Non-current provisions ......................................................................................................................66.7 56.9 48.7 Deferred tax liabilities .......................................................................................................................201.2 179.7 196.7 Other non-current liabilities ...............................................................................................................37.6 91.3 101.5 Total non-current liabilities ............................................................................................................1,085.1 1,060.8 1,155.0 Liabilities associated with non-current assets classified as held for sale ...........................................— 56.1 — Debentures and other marketable securities .......................................................................................3.7 3.5 3.6 Debts with credit institutions .............................................................................................................96.0 70.9 75.3 Trade creditors and other accounts payable .......................................................................................239.8 231.5 251.1 Current provisions .............................................................................................................................26.3 14.8 5.3 Other current liabilities ......................................................................................................................78.5 86.7 94.5 Total current liabilities ....................................................................................................................444.3 463.5 429.8 Total shareholders’ equity and liabilities.......................................................................................2,687.4