A financial analysis on NH-hotels

EXECUTIVE SUMMARY This report is a financial analysis of the NH Hoteles hotel company from the viewpoint of financial analysts wishing to purchase shares in the hospitability-leisure business. Along with NH Hoteles, we chose two American hotel chains, Hilton and Marriott, and one European chain, Accor as industry alternatives Our conclusions follow: ·The global travel industry has bottomed out since the dreadful years of 2001 and 2002 and is improving. ·NH Hoteles financial rations do not show …

…that these are important factors considering recent economic and industry trends, and will continue to hold down the NH share price compared to its larger and better-diversified competitors. However, the combination of financial solidity and stock price underperformance makes NH Hoteles an excellent acquisition target. We would consider purchasing the stock on this basis alone; however additional analysis would be necessary to ascertain what premium, if any, would be paid for control of NH Hoteles.