WORLD PROPERTY CHANNEL ®

(ZARAGOZA, SPAIN) -- Two prominent hotel management groups in Spain have merged to form the largest urban hotel group in the country.

NH Hoteles and Hesperia have contracted to integrate their hotel management businesses. The deal was supported by both of the companies' boards.

In a prepared statement, the companies say the agreement  "aims to consolidate the hotel management business of both groups, maximizing synergies through unified management of all hotels and taking advantage of complementary strategies.

"At the same time, Hesperia will join the board of NH Hoteles, providing added value to NH Hoteles and hence to its shareholders."

The companies say the main advantages of the deal are:

• NH Hoteles reinforces its strategy to lead the European market in the urban segment and extends its domestic and international presence without recurring to either capital  or debt increases. The transaction only assumes the management  of all Hesperia hotels and not the purchase of their owned or leased hotels.

• Hesperia, with more than 25% stake in NH Hoteles after the last capital increase of July 2009, will join the board of NH Hoteles and other committees of NH Hoteles.

GBS Finanzas is acting as financial advisor for both parties.

NH Hoteles ranks third among European business hotels. NH Hoteles currently has 349 hotels with 52,676 rooms in 22 countries in Europe, America and Africa.

With this agreement, the company will operate 400 hotels. NH Hoteles has 54 new projects for hotels under construction, which will provide more than 8,000 new rooms. NH Hoteles is listed on the Stock Exchange of Madrid.

Hesperia Hotels, with more than 30 years of experience in the hotel sector, has a total of 7,786 rooms in 51 hotels, of which 47 are located in the main cities in Spain, one in Andorra, one in London and two in Isla Margarita (Venezuela).

Hesperia's portfolio includes luxury urban hotels in Madrid, Barcelona and La Coruña; resort hotels with exclusive spa services and golf; urban and leisure hotels. 

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