• Highlight the positive trend in sales and Revpar (Revenue per available room) in the Benelux and in Austria, Switzerland and East European countries
• Including the first three weeks of April, thus neutralizing the effect of Easter Holiday, the 4% increase in Revpar (in comparable hotels) compare to the 1% in the first quarter, points out the positive trend in these first early months of the year

Madrid, | An 11% increase in hotel sales in the first quarter shows that the fundamental business of NH Hoteles is strong. The Group's revenues (hotel, real estate and Non-recurrent business) totalled €324.4M, 2% more than in the first quarter of last year. This slower growth in total revenues is explained by the fact that there were no Non-recurrent revenues compared to the same period last year.

Earnings have performed particularly well in the Benelux business unit, up by 13.7%, and in Austria, Switzerland, Hungary and Romania, where they have increased by 15%. Occupancy in this business unit went up by 7.12%. Worthy of note is the excellent trend of NH hotels in Brussels and Vienna.

In Italy, even though elections has taken place in the first quarter, comparable hotels have recorded a solid increase in Revpar (Revenue per available room) of 2.6%, reflecting how well the acquisitions made by the company at the beginning of last year have performed, which are already fully integrated. The hotels in Milan made a major contribution to this growth.

The Spain business unit has kept up a moderate growth in earnings, of 1.2%, reflecting the run-up to the elections and the effect of Easter Holiday, particularly noticeable in city hotels.

In Latin America, the negative evolution in local currencies distorts the good performance of our main markets in Mexico and Argentina. Particularly worthy of note in this business unit is the improvement in occupancy, up by 4.1%.

Even though sales have improved in the different business units, the effect of Easter does not reflect real trends in the hotel operations in these first months. Including the first three weeks of April are included, thus neutralizing the effect of this holiday week, when urban hotels have little activity, the 4% growth in Revpar (in comparable hotels) shows a true picture of the improvement in the Company's performance over these early months of the year.

Sotogrande's property business recorded earnings of €4.1M, compared to €10.8M in the same period of the previous year. The drop in sales can be explained by the schedule of homes deliveries. Most of the sales yet to be made will be recorded when the homes are delivered at the end of 2008 and relate to the real estate development "Ribera del Marlin" and the berths of the Marina.

The table below provides the main figures for the Revenues of the NH Hoteles Group as at 31 March 2008 and for the same period in 2007:

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