History

History of NH Hoteles

The history of NH Hoteles begins in 1978, when its first establishment opens its doors - the Ciudad de Pamplona hotel. Four years later, the chain moves beyond the region of Navarra and, with the incorporation of NH Calderón in Barcelona, takes its first steps into what would become just a decade later one of the first hotels chains in Spain, with establishments in Madrid, Barcelona and Zaragoza.

It was then, in 1988, that Corporación Financiera Reunida, S.A (COFIR) joined the company as a reference shareholder.

From this point on, the story of NH Hoteles is a story of growth in establishments, quality and prestige. In the following years, COFIR continued to gradually increase its participation and adapt its investment strategy to each of the advances made by the company. The company positions itself in the city hotels sector, builds a brand and develops a consistent business model that was never before seen in Spain.

During the 1980’s, the development of the chain throughout Spain strengthens and in 1994, NH Hoteles already has a total of 54 establishments in the country.

At the end of 1995 it becomes one of the main Spanish chains of city hotels. In that year, NH Hoteles starts to develop its now consolidated commitment to culture with what is now known as the “Mario Vargas Llosa NH Short Story Award”, which aims to support writers and encourage reading and literary creation.

1996 and 1997 are key years for the company. Coinciding with the departure of the De Benedetti Group from the group of shareholders, COFIR radically changed its strategy and started to focus on the activities related to its main subsidiaries, amongst which was NH Hoteles S.A. That is when COFIR acquires 100% of the capital of NH Hoteles. One year later, the company’s strategic change process culminates in the merger of the old COFIR with NH Hoteles. The new company lists on the Stock Exchange occupying the position of COFIR while maintaining the name of NH Hoteles. Throughout these years, the chain implements one of the initiatives linked to service quality specialization and to employee development that continues today, the corporate university, or NH University, created to provide extensive and ongoing training to all employees. Other initiatives worth highlighting are the positioning on the outskirts of cities with hotels offering limited services in order to fill a niche in the market that was very underdeveloped then, and the development of rooms specifically for women that met a wide range of needs that women have on their trips, in their work and leisure.

As part of its eagerness to spread culture, in 1998 NH Hoteles launches NH Stock Art, touring exhibitions in communal areas of the hotels geared towards supporting the artwork of young artists. In addition, on that same year, a new channel, the website www.nh-hoteles.com, begins to commercialize the services of the Group.

The chain then begins its journey toward international expansion. If 1998 is the year it begins to expand in Latin America, 1999 is the year it disembarks in Europe through the acquisition of a share in Jolly Hotels (19.1%). Furthermore, that year it enters into a strategic partnership to invest in Latin America, through the creation of the Equity International Properties fund, as well an agreement with Corporación Caja de Madrid to create AHORA (Actividades de Hostelería, Ocio, Restauración y Afines), a company geared towards the operation of tourism businesses. The growth experienced by the company (in Spain alone it now owns 88 hotels) is confirmed by its listing on the IBEX 35 stock index for the first time.

In 1999 NH Hoteles acquires 91.5% of Sotogrande, geared towards the development of residential areas designed for quality of life and family care. NH Hoteles enters the new century with a gigantic step.

2000 is the year of the merger and acquisition of Dutch hotel chain Krasnapolsky, which leads the company to double in size and have 168 hotels, 7,300 employees and a presence in 15 countries, to which Portugal was immediately added. The company becomes the top third business hotel chain in Europe, with a leading position the cities in which it is present. It is also a time of entry into several partnership agreements essential to the history of NH Hoteles: one with Ferrán Adriá to implement new culinary concepts in the chain, another with Adolfo Domínguez for the design of the employees’ uniform, and a third with Jesús del Pozo for the creation of special fragrances for clients. One year later, the acquisition of the Mexican hotelier, Chartwell, adds 14 establishments to the chain, which decides to operate globally with a single brand and integrate the 9 commercial offices distributed across different countries in the world.

In 2002, NH Hoteles defines the strategic lines of its business: reliability, focus on people, business sense, innovation and fun. Within this framework, a corporate responsibility department is created that gears towards the improvement of the most disadvantaged sectors of society, and the first Nhube space opens - a multifunctional concept that has gradually extended within and outside of Spain. The company continues its international growth strategy through new acquisitions (it acquires the German chain, Astron Hotels, adding 46 establishments in Germany, 6 in Austria and 1 in Switzerland).

2003 is a period during which significant operating savings are identified and made, and the hotel portfolio is reorganized, involving the sale of establishments that did not adapt to the philosophy and service of NH Hoteles.

In 2004, the chain enters into new markets such as Italy and Romania and exports the “Nhube” concept to Frankfurt (Germany) and to Vienna (Austria). The Chain launches new electronic products such as the website for its private and corporate clients and its NH World loyalty programme. NH Hoteles’ commitment to culture is reinforced that year when the prestigious author Mario Vargas Llosa decides to support the short story award and give it his name. Furthermore, the ongoing commitment to young artists provides NH Hoteles with a good collection of contemporary art - the NH Stock Art collection, which today exceeds 4,000 works of art. The Company displays the works in its hotels so that clients have the opportunity to enjoy them in their rooms and in the communal areas of the hotels.

With 240 hotels and 35,000 rooms in 18 countries throughout Europe, Latin America and Africa, NH Hoteles begins business in the United Kingdom with the incorporation in 2005 of NH hotel Harrington Hall, in London, and open the first hotel in France (Lyon).

In 2006, the chain exceeds the boundary of 14,000 employees and becomes the leader of its sector in Italy after signing an agreement with hoteliers Framon and Jolly Hotels. NH Hoteles receives the Príncipe Felipe Award for Tourism Excellence and opens the first Nhow establishment in Milan - the new category of hotels geared towards a cutting-edge, sophisticated and international clientèle. Endowed with the award for the best company to work for in Spain, the Netherlands and Germany (CFR), NH Hoteles begins 2007 with 341 hotels in 21 countries across three continents, 49 projects in progress and 19,000 employees of 115 different nationalities. NH Hoteles enters new markets such as New York, Paris and Nice and opens NH Constanza in Barcelona - a new hotel reference for the Spanish city. It is also worth highlighting that the NH World loyalty programme already reaches almost one million active members, and that NH Resorts is launched, which focuses on the premium holiday segment products offered by the Company.

With the steadfast aim of following an environmental policy and promoting improvement initiatives in this regard, the Group’s Environmental Affairs Department is established in 2007. This department aims to enhance care and respect for the environment, reducing insofar as possible the impact that the activities, products and services provided by NH Hoteles may have.

In 2008, NH Hoteles presents the objectives of its 2012 Environmental Plan, fulfilling eight years in advance the European objective to reduce emissions and consumption by 2020. The implementation of this plan reaffirms NH Hoteles commitment to sustainability. With this plan, NH Hoteles hopes to offer a sustainable, lasting and effective hospitality experience that translates into value for our clients, shareholders, suppliers and for society in general. One year later, NH Hoteles and the Spanish chain Hesperia sign an agreement to merge their respective hotel management businesses. By means of this transaction, NH Hoteles begins to manage the 51 hotels that were the property of, or were operated by, Hesperia.

In addition, in 2009, NH Hoteles and HUSA sign an agreement for the creation of a cooperation platform in the acquisition sector. The new company is named Cooperama, and merges the purchases volume of the two companies. The platform, in which NH Hoteles has a majority share, is created with the intention of providing a service to other chains and therefore to improve competitiveness in the sector. Throughout these years, NH Hoteles continues to harvest success in the majority of its areas of activity. One example worth highlighting is the award given to the design of its rooms which received and important recognition at the European Hotel Design Awards hosted in London.

In 2010, NH Hoteles launches Ecomeeting - a cutting-edge product for the MICE segment. This new concept for the organisation of events, conferences and conventions is defined according to standards of sustainability and represents a respectful use of energy resources, as well as the use of fair trade products with low environmental impact. In addition, the company launches its sustainability Club NH - a creative laboratory for environmental innovation in the field of product and service development. Furthermore, the company takes a step forward in terms of client management by centralising reservations from the main markets it was operating in that year. In the same year, the Company receives different awards for its commitment to corporate responsibility in different areas. These range from the involvement in social projects and recognitions of employee motivation initiatives to the involvement of its suppliers in the development of environmentally-sustainable projects.

In 2011, and after a year of important adjustments and divestments to strengthen the Company’s financial position, NH Hoteles ranks amongst the top 25 chains in the world and is one of the most important in Europe, with around 400 hotels and 60,000 rooms.