NH Hotel : and Hispania sign an agreement to reposition and extend the NH Málaga hotel

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• Hispania acquires the current 133-room NH Málaga and undertakes an investment commitment to improve the existing hotel
• Within the agreement, Hispania is committed to the future acquisition of the expansion of the hotel that NH Hotel Group plans to develop in the adjacent plot to the NH Málaga hotel, currently owned by the hotel group
• This second stage of the transaction, subject to the construction of the adjacent building by NH Hotel Group, is scheduled to end before the first quarter of 2019
• Additionally, both companies have agreed that NH Hotel Group will operate the resulting hotel complex under a long-term variable lease with a minimum guaranteed
• The transaction allows NH Hotel Group to preserve the operation of an important asset located in the center of one of the main cities of Spain without capex investments and through a low risk operating formula that, once the divestment is completed, will allow to maintain an EBITDA level similar to that generated by the hotel today

NH Hotel Group, a global operator with around 400 hotels in 30 countries, and Hispania, a leading investment vehicle and real estate company in Spain, have reached an agreement for the sale and & lease back of the current NH Málaga hotel as well as the future acquisition of the extension of the hotel, that NH Hotel Group plans to develop in the adjacent plot. The agreement will increase the hotel's current capacity from 133 rooms to 245

'The transaction is part of the Company's asset rotation strategy and means improving the hotel and increasing the inventory of rooms once the expansion is completed, taking advantage of its potential under a long-term variable lease agreement', has explained Ramón Aragonés, CEO of NH Hotel Group.

The transaction, amounting as a whole at 41 million euros, has been structured in two phases:

Sale and lease back of the current NH Málaga

Firstly Hispania has acquired from NH Hotel Group the NH Málaga Hotel and the hotel group has agreed to continue operate the hotel through a long-term variable lease agreement with a minimum guaranteed. In addition, Hispania is undertaking an investment commitment to improve the existing product by refurbishing of the hotel, to be completed before June 2019. The agreement is in line with NH Hotel Group's strategy of developing its portfolio under asset light formulas and improving the quality of the hotels under operation.

The NH Hotel Malaga, owned by NH Hotel Group since 1999, is located in a strategic location in the heart of the city, close to shopping, entertainment and tourist areas. The hotel currently has 133 rooms, 9 meeting rooms - one of which can accommodate up to 1,000 attendees - as well as a restaurant, two terraces and a full gym.

Acquisition of the hotel extension

As part of the transaction, both companies have agreed the future acquisition by Hispania of the expansion of the hotel that NH Hotel Group plans to develop on the adjacent plot of the NH Malaga, currently owned by the hotel group. This transaction is subject to the construction of the contiguous building, scheduled between the last quarter of 2018 and the first of 2019. The extension of the hotel will consist of 115 rooms and once its sale is executed, NH Hotel Group will start to operate this extension also under a long-term variable contract with a minimum guaranteed.

About NH Hotel Group

NH Hotel Group (www.nhhotelgroup.com) is a world-leading urban hotel operator and a consolidated multinational player. It operates close to 400 hotels and almost 60,000 rooms in 30 markets across Europe, the Americas and Africa, including top city destinations such as Amsterdam, Barcelona, Berlin, Bogota, Brussels, Buenos Aires, Düsseldorf, Frankfurt, London, Madrid, Mexico City, Milan, Munich, New York, Rome and Vienna.