Hotel Asset Management 2

NH_Nhow-Berlin
Index
Our history 3
NH Portfolio at a glance 4
Portfolio evolution 5
Our vision 6
7
LT sustainable lease and management contracts
15
To create value through repositioning
27
Active asset management strategy
37
Growth
2
Our history
NH_Collection-Olomouc
NH Collection Madrid Palacio de Tepa, Spain
Global player through organic growth and strategic acquisitions
2000 2002 2009

Acquisition Krasnapolsky: Acquisition Astron: 53 NH and Hesperia signing, 51
65 Hotels (€728m) hotels (€130m) new managed hotels
2001 2015
2007
Acquisition Chartwell Acquisition Hoteles
Capital increase of €250m
hotel chain: 14 hotels Royal: 20 hotels (€66m
Acquisition Jolly : 45 hotels
(€670m) net of NH Bogota P93)
3
NH Portfolio at a glance
NH Collection Amsterdam Grand Hotel Krasnapolsky, The Netherlands NH_Collection-Olomouc
75
Owned hotels
c. €1,9 bn
83 222
Managed hotels Leased hotels
4
Portfolio evolution
NH City Centre Amsterdam, The Netherlands
Hotels per contact type
January 2013 Exits August 2017

- 7.505 rooms
-2.847 Managed
22% 24% 21%
24%
-2.517 Leased
-2.141 Owned
54% 55%
Entries
+ 7.553 Rooms
Shareholder structure(2)
Owned Leased Managed Owned Leased Managed
Managed 3.616
Nº OF ROOMS Nº OF ROOMS
58.853 58.901
Leased 3.451
2013 EBITDA 2017E EBITDA
€111m €230m
Owned 486
5
Our vision
NH Collection Madrid Abascal, Spain
To create value through a balanced and continuously improved portfolio
Long Term
sustainable Create value Active Asset
lease and through Management Growth
management repositioning Strategy
contracts
6
Our vision
Restaurant Vermeer, The Netherlands
Long Term
contracts
7
Leased hotels
NH Collection Bogotá Teleport Royal, Colombia
What have we done to maximize the value of NH leased hotels?
Contract 27 lease contracts have been canceled

Cancelation - 22 of them generated a negative Ebitda of €6m
109 renegotiations have been successfully signed

Contract
restructuring Fixed rent reduction and inclusion of variable components (in some cases co-investment and
extension of the contracts)
New
contracts 27 new lease agreements have been signed and opened since 2014
8
Leased hotels
NH Brussels Grand Place Arenberg, Belgium NH_Collection-Olomouc
Which are the results of the actions carried out since 2013?
Evolution of nº of hotels with negative EBITDA Rent coverage ratio evolution

€-28m
1,83
€-18m
1,7
1,44 1,53
€-16m 1,33
91 1,75
1,49 1,64
66 1,32 1,42
€-7m
50 €-5m
21 17
2013 2014 2015 2016 2017E 2013 2014 2015 2016 2017F
Total negative EBITDA generated Rent Coverage

Fixed Ratio of Ratio
Rent Coverage Fix Rent contracts Rent)
(GOP/Fixed
Total
TotalRent
RentCoverage Ratio
Coverage Ratio (GOP/Total Rent)
9
Leased hotels
La Terraza del Casino, Spain
What are the results of the actions carried out since 2013?
Contracts with Total Rent Coverage Ratio > 1,5x (1) Fixed rent contracts (1)
144 2017E Nº hotels Fixed Rent %

143
Rent Coverage Ratio > 1,5x 128 150.552.484 58%

103
77 Rent Coverage Ratio 1x a 1,5x 57 91.674.814 35%

64
Rent Coverage Ratio < 1x 17 18.579.206 7%
TOTAL 202 260.776.504
(1) Excluding allocation of centralized costs & HQ

2013 2014 2015 2016 2017F
Nº of contracts
10
Managed hotels
Restaurant Santceloni, Spain
What have we done to maximize the value of NH managed hotels?

2013 2017
Evolution of fees generated by Management contracts
€13m €23m
Contract
Cancelation 28 Management contracts have been canceled or not renovated
Hesperia 28 Hesperia were negotiated with a new fee structure and 9 year duration, rebranding and
repositioning the portfolio have been agreed
New
contracts 20 management contracts have been incorporated (10 in America and 10 in southern Europe )
11
Managed hotels
Management contract with Hesperia Hotels signed

• Performance H1 2017:
• Former Hesperia Murcia after refurbishment and rebranding
12
Leased and managed hotels
NH Collection Amsterdam Grand Hotel Krasnapolsky, The Netherlands
What actions will be carried out for the coming 3 years?
Contract 13 leased contracts will not be renovated

Cancelation
25-30 contracts are expected to be renegotiated, including negotiations:

Contract - to renew those contracts that are EBITDA contributors expiring in the coming 3 years (2018-2020)
restructuring
- capex contribution by the owners
27 signed contracts will come into operation

New
- 8 management contracts
contracts
- 19 lease agreements
13
Our vision
Long Term
contracts
contracts
14
Repositioning
What have we done to create value through repositioning? c.€200M Repositioning Capex cash outflow in 2014-2016
Execution H2 ‘14 H1 ‘15 H2 ‘15 H1 ‘16 H2 ‘16 %

Execution Phase 2014- 2016
Spain 42%
• Since the start of the plan through June 2017 refurbishment
has taken place at 61 hotels Italy 7%
• Capex execution risk left behind with upside remaining till Benelux 28%
2018-2019
Germany 17%
• On top of NH Repositioning, we have obtained capex
contribution by owners (leased hotels) of around €60m Latin America 6%
• Brilliant basics and IT

Investments 2014-2016
• On top of our repositioning initiative, we have invested an
additional approximately €40 million in basics (TVs, mattresses, €200m
showers) Repositioning Capex
(50% owned hotels, 50% leased)
• We invested approximately €30 million in 2014 and 2015 to

Basics €40m
overhaul our IT management systems across our entire business,
developing a new website and implementing the revenue IT Capex €30m
management tool
15
Repositioning
What have we done to create a value through repositioning?

• Leased Hotels: Execution Phase 2014- 2016
▪ 43 leased hotels have been refurbished with a total Capex of €140m
• Out of this €140m, €40m have been obtained from contribution by owners
• In those projects with co investment (17) owners have contributed with 60% of the total investment
• Leased Hotels: Execution Phase 2017
▪ 10 leased hotels have been refurbished with a total Capex of €24m

• Out of this €24m, €20m have been obtained from contribution by owners
• In those projects with co investment (6) owners have contributed with 94% of the total investment
In those projects with co-investment (23) owners have contributed with 67% of the total investment (€60m)
16
Repositioning
What have we done to create a value through reposition?

• Since the start of the plan through June 2017 refurbishment has taken place at 61 hotels
• Compound annual RevPar growth rate for hotels repositioned in 2015 and 2016, with more than 6 months of post-refurbishment
operation, during the first semester of 2017 compared with the same period prior to the refurbishment is +13.2%
• Additionally taking into account 2015 refurbishments (Spain) and considering 2 years of operations after refurbishment:
- Incremental EBITDA Forecast 17 - EBITDA 2014 +1.5% CPI 3 years: +€18m
- Investment: €62m
- Incremental EBITDA / Investment: 29%
17
Repositioning
NH Brussels Grand Place Arenberg, Belgium NH_Collection-Olomouc
Examples Before After
NH Nacional
(Madrid, Spain)
NH Collection
Eurobuilding
(Madrid, Spain)
18
Repositioning
NH Collection
Paseo del Prado
(Madrid, Spain)
NH Collection
Abascal (Madrid,
Spain)
19
Repositioning
NH Atocha
(Madrid, Spain)
NH Ventas
(Madrid, Spain)
20
Repositioning
What actions will be carried out for the coming 3 to maximize the value of NH owned and leased hotels through
repositioning?
Owned Hotels:
• The company's strategy tends to continue to invest and improve the owned assets that have potential to improve its RevPar/EBITDA
• In the short term, we expect to invest .€20m
• In addition, we are studying other 5 owned assets that may have a high return on investment
Leased Hotels:
• C. 35 additional hotels opportunities for repositioning linked to renegotiation and extension of contracts
• Committed agreements:
• 11 contracts
• €69m of Capex investments: €59m of co-investment from hotel owners and €10m from NH
21
Spaces initiative: our vision
NH Madrid Nacional, Spain
Inefficient use of spaces at numerous hotels generates a potential for profitability
Issue Outsourcing of wellness centers / car parks that may

continue providing their service to customers
Certain hotel spaces generate less revenue than would

be obtained by a third party at the same location
Spaces suitable for an alternative use which allows the

Strategic choice increase of sales (e.g. terraces, bars, meeting rooms in
ground floor).
To increase the profitability of certain spaces during Hotel’s

repositioning
Opportunity During refurbishment, distribution of spaces can be

changed and works budget can be optimized.
You need to change the function of spaces as consumer

behavior changes and turn underutilized space into
revenue
22
Spaces initiative: KPI’s
Nhow-Milano
Impact of hotel spaces optimization
INCREMENTAL EBITDA EBITDA (2016)
5 11%
4
4% Other spaces
4
3,4 4%
Car parks
3 2%
2,5
2 Spa/Gym
1,7
1 Commercial/retail
79%
0 Restaurants
2014 2015 2016 2017E
24
Spaces initiative: Success stories
Nhow-Berlin
BEFORE AFTER
EDIMBURGO
MEETING
ROOM
MICHELIN STARS
WOGABOO
RESTAURANT
ZURICH,
BUDAPEST
MEETING
ROOMS
NH Collection Eurobuilding, Marid
25
Success stories
NH_Mendoza-Cordillera
NH City Centre Amsterdam,

NH Collection The Netherlands
Madrid Abascal, Spain
Passion Chocolat: chocolaterie Breakfast, RoomService and Mice

outsourced under the NH
Collection Standards.
Gastronomic restaurant integrated Brasserie with independent

in the lobby of Hotel. Access.
NH Collection Grand Sablon, Brussels
A la bonne heure jewelry Arthus-Bertrand jewelry
26
Our vision
Long Term
contracts
contracts
26
c.1,9bn€
hotel 77m€
Non-hotel
asset asset
NH_Collection-Eurobuilding - Madrod
27
Net cash from previous transactions
NH Málaga
Debt and capex

Active asset management strategy
financing
251
Krasnapolsky, Ambasciatori,
Sotogrande, etc Málaga, etc.
142
114
36 30
2013 2014 2015 2016 YTD Aug 2017
28
Transactions 2013 – YTD Aug2017
Net cash distributed by country Value added:

✓ Reduction of the concentration of the capital
Colombia; employed
UK; 2,8%
4,5%Germany; ✓ Reduction of the risk exposure (S&MB)
47%
11,5%
✓ Repositioning of the hotel
The ✓ Additional value generation
Italy; 3,8%
Netherlands; Rep. Dom.; ✓ To monetize the participations/options on leased
37,4% 1,1% assets
Examples: NH Málaga in Spain and Ambasciatori in Italy
Spain; 37,6%
Non strategic hotel sales:
9%
Switzerland;
✓ Poor asset
1,0%
✓ Non-strategic location/city
Colombia Germany Italy Example: vacancy sale of Fribourg in Switzerland
Rep. Dom. South Africa Spain
Switzerland The Netherlands UK
43%
Other transactions:
✓ S&LB of Amsterdam Center
✓ Sale of minority stake in Harrington Hall London
✓ Sotogrande
29
Drivers
NH Brussels Grand Place Arenberg, Belgium
Maximized
Management of
Company Exit of non- return on
non-hotel
financial targets strategic hotels capital
assets
employed
30
Asset management plan (1/4)
Exit of non
• Commitment to do smart asset disposal in
estrategic
hotels
order to achieve the financial targets 2017/18:
✓ NY transaction and/or other transactions
that could lead to equal or higher
cash/capital gain impacts in 2017-18
Maximized
return on
capital Company financial • Always smart asset disposal:
employed
targets ✓ Market momentum (through different
methodologies)
✓ Consolidated properties
Manage- ✓ Peak performance
ment of
non-hotel
✓ Professional investors
assets ✓ Market liquidity
31
Company
financial
targets • c.52 m€ (8 hotels) estimated market value of non-
strategic hotel assets
• Exit markets in a mid-term timeframe linked to:

Maximized
return on Exit of non- ✓ Exit market
capital
employed strategic hotels ✓ Suburb locations
✓ Hotels with limited upside despite of a
potential refurbishment plan
Manage-
ment of
non-hotel
assets
32
Company • Non-recurrent plan: to maximize the value of the

financial
targets shareholders through higher return on the Real Estate
capital employed
Maximized return • Over 1bn€ (35 hotels) estimated market value of core
Exit of
non- on capital hotel assets
strategic employed ✓ Market momentum (through different
hotels
methodologies)
✓ Consolidated properties
✓ Peak performance
Manage-
ment of ✓ Professional investors
non-hotel
assets
✓ Market liquidity
33
Company
financial
targets
• 77 m€ of non-hotel assets (book value)
Management of • Disposal strategy for those assets that we would not

Exit of non-
strategic non-hotel assets develop for hotel use fulfilling certain level of
hotels profitability ratios
• To keep and to develop the remaining assets in the

mid/long term
Maximized
return on
capital
employed
34
Our vision
Long Term
contracts
contracts
35
Signed hotels overview
62 signings from 2014 to YTD Aug 2017
+8
+20 +1 +2
+1 +5
+1 +2
+3 +1
+3
+1 +8
+2
+4
Note(*): 2 hotels considered as 2014 signing although the signature happened by end 2013
36
# of contracts
NH_Collection- Suecia – Madrid
37
Development: Portfolio evolution by brands
2013 2017
Including 62 signed hotels
NHOW 1% Hesperia 12% Hesperia 4%

NH Collection +3.812 rooms
0% NH Collection
21%
+3.526 rooms NH How 4%
+1.505 rooms NH 71%

NH 88%
Based on # rooms Based on # rooms
38
Development: Portfolio evolution by geography
NH Brussels Grand Place Arenberg, Belgium
2013 2017
Including 62 signed hotels
Germany and
Eastern Europe Spain 35% Italy 14%
23% Spain 28%
Spain: +435 rooms
America: +4.233 rooms Germany and

Eastern Europe
24%
Benelux +1.691 rooms
Benelux 16%
Germany and EE: +1.554 rooms

America 16%
America 12%
Italy 14% Italy: +930 rooms
Benelux 18%
39
Development: Portfolio by type of contract
2017
Including 62 signed hotels # rooms signed contract
Lease contracts
breakdown
Owned 20%
Fixed 24%
Fixed
2837
Management
2283
Variable
2109
Var. w/ MGR
1614
Managed 20%
Leased 61% Variable w/ min.
Guaranteed rent 42% Variable 34%
40
M&E hotels
M&E hotels Other hotels
87% 78%
22%
13%
2014 2017 INCL. SIGNED HOTELS
41
Development: Nhow hotels in the pipeline
42
Example of NH Collection hotels recently signed
NHC Rome Cinquecento
NHC Mérida
NHC Porto Batalha
NHC Frankfurt
43
Example of NH hotels recently signed
NH Palazzo NH Toulouse
Moscova Airport
NH Leipzig NH Puebla Finsa
44
Alignment across departmental level

Business Plan
Development
Operations Expansion Hotel

Committee budget
Revenue
Management
Commercial
Finance
NH_Collection- Eindhoven
45
Growth Strategy : Type of contract
Europe America New markets

Spain & Germany & Mexico & South Eastern South Middle
UK France Benelux Italy Nordics
Portugal Austria Caribbean America Europe Africa East
Pure
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
+ Management
Management
w/ low NOI
Guarantee for a ✓ ✓
limited #years
preference
w/ NOI guar. &

basket
✓ ✓
Variable with MG
for a limited ✓ ✓
#years
Leases
Variable with MG
& basket ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
- Fixed
46
Growth Strategy: Future overview
2017-2018+: Growth in current markets
2019+: Entry in new markets
47 47
NH_Nhow-Berlin
Thank you
48

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NH_Nhow-Berlin

NH Collection Madrid Palacio de Tepa, Spain

Global player through organic growth and strategic acquisitions

2000 2002 2009

NH City Centre Amsterdam, The Netherlands

Hotels per contact type

January 2013 Exits August 2017

NH Collection Madrid Abascal, Spain

To create value through a balanced and continuously improved portfolio

Restaurant Vermeer, The Netherlands

To create value through a balanced and continuously improved portfolio

NH Collection Bogotá Teleport Royal, Colombia

What have we done to maximize the value of NH leased hotels?

Contract 27 lease contracts have been canceled

109 renegotiations have been successfully signed

Evolution of nº of hotels with negative EBITDA Rent coverage ratio evolution

Total negative EBITDA generated Rent Coverage

La Terraza del Casino, Spain

144 2017E Nº hotels Fixed Rent %

Rent Coverage Ratio > 1,5x 128 150.552.484 58%

77 Rent Coverage Ratio 1x a 1,5x 57 91.674.814 35%

TOTAL 202 260.776.504

(1) Excluding allocation of centralized costs & HQ

Restaurant Santceloni, Spain

What have we done to maximize the value of NH managed hotels?

NH Collection Madrid Palacio de Tepa, Spain

Management contract with Hesperia Hotels signed

• Former Hesperia Murcia after refurbishment and rebranding

What actions will be carried out for the coming 3 years?

Contract 13 leased contracts will not be renovated

25-30 contracts are expected to be renegotiated, including negotiations:

27 signed contracts will come into operation

NH City Centre Amsterdam, The Netherlands

To create value through a balanced and continuously improved portfolio

NH Collection Madrid Abascal, Spain

Execution H2 ‘14 H1 ‘15 H2 ‘15 H1 ‘16 H2 ‘16 %

• Brilliant basics and IT

• We invested approximately €30 million in 2014 and 2015 to

Restaurant Vermeer, The Netherlands

What have we done to create a value through repositioning?

• Leased Hotels: Execution Phase 2017

▪ 10 leased hotels have been refurbished with a total Capex of €24m

NH Collection Bogotá Teleport Royal, Colombia

What have we done to create a value through reposition?

- Incremental EBITDA Forecast 17 - EBITDA 2014 +1.5% CPI 3 years: +€18m

- Incremental EBITDA / Investment: 29%

Examples Before After

La Terraza del Casino, Spain

Examples Before After

Restaurant Santceloni, Spain

Examples Before After

NH City Centre Amsterdam, The Netherlands

NH Madrid Nacional, Spain

Inefficient use of spaces at numerous hotels generates a potential for profitability

Issue Outsourcing of wellness centers / car parks that may

Certain hotel spaces generate less revenue than would

Spaces suitable for an alternative use which allows the

To increase the profitability of certain spaces during Hotel’s

Opportunity During refurbishment, distribution of spaces can be

You need to change the function of spaces as consumer

Impact of hotel spaces optimization

INCREMENTAL EBITDA EBITDA (2016)

NH Collection Eurobuilding, Marid

NH City Centre Amsterdam,