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11. NON-CURRENT FINANCIAL INVESTMENTS
11.1 Loans and accounts receivable not available for trading
The breakdown of this item at 31 December 2012 and 2011 is as follows:
€ Thousand
2012 2011
Subordinated loans to companies owning hotels operated by the Group through leases (*) 44,373 40,472
Other collection rights 11,574 10,433
Loans to staff (Note 28) - 6,123
Lease advance payments 22,124 9,892
Accounts receivable from joint ventures (Note 28) 4,043 4,469
Loans to associated companies (Note 28) (*) 2,250 2,250
Long-term deposits and surety 12,052 11,492
Others 4,245 13,772
Total 100,661 98,903
(*) These loans accrue an average rate of interest of between 3% and 4.89%
The “Subordinated loans to companies owning hotels operated by the Group through leases” item includes a series of loans granted by the Group
to companies which own hotels in countries such as Germany, Austria, Luxembourg, the Netherlands, Italy and Spain, and which are operated by
the Group under a leasing agreement.
These transactions, which are mainly aimed at refinancing and reducing rents, are currently being used for the Group’s growth. The main features of
these agreements are as follows:
- Hotel rents are not subject to evolution of the inflation rate or to that of any other index.
- The above-mentioned subordinated loans accrue interest at a fixed rate of 3% per year (€2.21 million in 2012 and €1.89 million in the preceding
year).
- New rental agreements establish a purchase right on properties subject to agreements that, as a general rule, may be executed in the fifth, tenth
and fifteenth year from the entry into force of the agreement.
- The model used for these rental agreements has been analysed and independent experts consider them to be operating leases.
The “Other collection rights” item reflects the claim filed against the insurance company that underwrote the ten-year building works insurance.
The amount claimed corresponds to the repair works performed and yet to be carried out on a housing development belonging the subsidiary
Sotogrande, S.A.
The “Lease advance payments” item includes advance payments made to the owners of certain hotels operated under a rental scheme for the
purchase of decoration and furniture; these are discounted from future rental payments.
In addition, €17,428 thousand is booked as the balancing entry for the promissory notes provided to the owners of a number of leased hotels (see
Note 18).
11.2 Other non-current financial investments
This heading of the consolidated balance sheet comprised, at 31 December 2012 and 2011, the following equity interests, valued at cost:
Company
€ Thousand
2012 2011
Hotelera del Mar, S.A. 3,151 4,645
NH Panamá, S.A. 3,539 3,539
Others investments 5,547 5,104
Provisión Hotelera del Mar, S.A. (421) -
Other provisions (2,108) (782)
Total 9,708 12,506
These companies were not consolidated at 31 December 2012, since they were inactive on said date.
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS 83