COMPANY DESCRIPTION
Equity International and NH Hoteles, a widely recognized European owner and operator of hotels, created Latinoamericana de Gestion Hotelera (Latina) to capitalize on the shortage of quality business-class hotels in Latin America against a backdrop of rising demand from multinational companies, and to facilitate the expansion of NH-branded hotels in the region. Latina began operations with the acquisition of several strategic assets in major South American cities and expanded the portfolio to include the ownership or operation of hotel rooms in five countries: Mexico, Brazil, Argentina, Uruguay and Chile. EI converted its ownership interest in Latina to public shares in NH Hoteles in 2006 and completed the sale of its interest in 2007.

MARKET OVERVIEW
Intra-regional travel is on the rise as business interests of major Latin American and international corporations drive further expansion in the region. Mercosur, the Latin American common market that links Argentina, Brazil, Paraguay and Uruguay -- and through an associated agreement, Bolivia and Chile -- has a combined GDP of nearly US$1 trillion and a population of more than 200 million. The emergence of this market has helped foster growth in cross-border trade and travel. The hospitality industry is widely viewed as one of the top growth sectors in Latin America, with the international business-class hotel segment currently undeveloped and highly fragmented. The 3- and 4-star category has historically offered inconsistent levels of quality along with limited amenities and services, driving demand for a high-quality product in the critical business travel segment.