Consolidated Financial Statements and Consolidated Management ...

a.2. Changes in the scope of consolidation in 2010
a.2.1. Incorporations
The companies which were incorporated into the scope of consolidation in 2010, along with method of consolidation employed were the following:
Company Consolidation method Effective date of acquisition
Parque de la 93, S.A. Full consolidation 25/11/2010
Sotocaribe, S.L. Equity method 25/06/2010
Parque de la 93, S.A., which owns a hotel project in the city of Bogota, Colombia, was incorporated into the consolidation boundary in the second half
of 2010.
The breakdown of its assets and liabilities was as follows:
Fair Value
Tangible fixed assets 13,005
Cash and cash equivalents 703
Other current liabilities (59)
Net assets acquired 13,649
Cost 13,649
Along with other members unrelated to the Group, the Group incorporated Sotocaribe, S.L. on 25 June 2010, in which it holds a 35.5% stake, for the
purpose of making it the parent company of the Group’s real estate investments in Mexico.
On the same date, Sotocaribe, S.L. implemented an increase of capital in which the Group contributed its stake in the share capital of Desarrollos Isla
Blanca, S.L. and in Desarrollos Isla Poniente, S.L. No consolidation differences whatsoever resulted from this transaction.
On 13 January 2010, a deed was executed by means of which Donnafugata Resort S.r.l. approved an increase of capital amounting to 5,074,000 euros.
The Group subscribed 3,327,000 euros, thereby increasing its stake from 54.97% to 58.82%.
Several companies were incorporated in 2010, including: De Nederlanse Club Ltd.; Heiner Gossen Hotelbetrieb GmBH HEMV Amsterdam B.V. and
HHM Jolly B.V.
a.2.2. Exits
The companies Servicios e Inmuebles Turísticos S.A. de C.V., Chartwell Inmobiliaria de Monterrey, S.A. de C.V. and Chartwell Inmobiliaria de Juárez S.A.
de C.V. were sold on 22 February 2010 for a total of 42 million euros. These companies own three hotels located in the Mexican cities of Guadalajara,
Monterrey and Ciudad Juárez respectively. The capital gain booked for this transaction amounted to 3 million euros.
On 10 May 2010, the companies Jolly Hotels St. Ermin’s B.V. and Jolly Hotels UK Ltd. in the United Kingdom, owners of a hotel in London, were sold for
75 million euros. The loss booked for this transaction amounted to 12 million euros.
The resulting effect of the exit of the above mentioned companies on the consolidated balance sheet at 31 December 2010 was as follows:
Thousand euros
Tangible fixed assets 147,523
Goodwill 471
Intangible assets 10
Other long-term debts (42,850)
Current assets and liabilities 10,254
Net assets disposed of 115,408
Recycling of translation differences IFRS 1 (17,874)
Consideration (83,917)
Loss before minority interests 13,617
Minority interests (3,935)
Consolidated loss 9,682
3. DISTRIBUTION OF EARNINGS
At the Ordinary General Shareholders’ Meeting, the Parent Company’s directors will propose that the individual losses of NH Hoteles, S.A. be applied to
the “Prior year’s losses” account to be offset in future financial years. In accordance with Article 273.4 of the Revised Text of the Capital Companies Act, the
directors will propose to allocate 2,088,000 euros as an unavailable reserve, as provided by such article, at the Ordinary General Shareholders’ Meeting and
charge it to freely available reserves, because the Company has not generated any profits this year .
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REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS