NH Hotels Signs a Major Strategic Agreement With the Chinese HNA Group

MADRID, June 3, 2011 -

- NH Hotels has Signed a Major Strategic Agreement With the
Chinese HNA Group Which Strengthens the Financial Solvency of NH Hotels and
Consolidates the Company's Process of Internationalisation.

At a meeting the Board of Directors of NH Hotels decided to
recommend the entrance of HNA Group as a new shareholder of the Company. The
Chinese group will acquire a 20% holding in NH Hotels and will have two
members on the Company's Board of Directors. The transaction, totalling
EUR431.6M, involves making a capital increase, excluding the right of first
refusal, at a price of EUR7 per share, which represents a significant premium
to the current market price and to the average share price for the last
quarter. HNA Group will thus become the second largest shareholder in the
Spanish company. The agreement is subject to approval by the Chinese
regulatory authorities and that two directors of HNA Group become members of
the NH Hotels Board of Directors.

HNA Group and NH Hotels will also contemplate setting up a hotel
management company in China to carry on the four-star hotel sector, which is
where NH Hotels focuses its strategic business. The joint venture complements
NH Hotels' current strategy of growing using low-risk strategies, such as
management of third-party owned hotels. Moreover, it helps the hotel chain to
enter one of the fastest growing markets in the world, working in partnership
with a local group that is a major player in the Chinese market.

The agreement envisages bringing into a new joint venture the
management of several existing HNA hotels that fit the NH Hotels brand image
and segment. The joint venture will benefit from the management, loyalty and
booking systems of NH Hotels, and use the NH Hotels brand name in China and
would be supported by the knowledge and ability to gain local access of HNA
Group in identifying the best locations for hotels, local management teams
and general logistics of the group in the Chinese market.

NH Hotels chairman, Mariano Pérez Claver, said: "I would like to
emphasise the great commercial value, which strengthens the balance sheet of
the group and at the same time stands for a far-reaching strategic step for
NH Hotels. The alliance we are now arranging means that our company will have
the opportunity to enter a market which has huge potential, China, and where
there is a clear opportunity available for NH, working with a major, dynamic,
powerful, prestigious business group which will, furthermore, become a major
shareholder of NH. As a result, NH Hotels interests in China will be fully
aligned with those of HNA".

Adam Tan, executive director of HNA Group, added: "HNA Group is
honoured to join with the NH Hotels' shareholders and board members to
support NH Hotels' management team as they continue to grow their world-class
company into a truly world-wide company by developing operations in what will
be the largest hotel market in the world".

About NH Hotels:

NH Hotels ranks third among European business hotels. The Company
operates 400 hotels, including hotels in Amsterdam (
www.nh-hotels.com/nh/en/hotels/the-netherlands/amsterdam.html) and
hotels in Brussels (
www.nh-hotels.com/nh/en/hotels/belgium/brussels.html), with around
60,000 rooms in 25 countries, and is a leader in Europe (36% of the rooms
portfolio located in Spain, 18% in Germany, 14% in Italy and 11% in The
Netherlands among others), as well as being present in America and Africa. NH
Hotels has at present 22 new projects for hotels under construction, which
will provide 3,000 new rooms. NH Hotels is listed on the Stock Exchange of
Madrid.

    For further media information, please contact:

    Ana Bermejillo
    PR and Communication Advisor
    Santa Engracia
    120 Edificio Central
    Madrid
    Spain
    +34-91-451-97-62
    www.nh-hotels.com

.