Hesperia and NH Hoteles have made a statement indicating that they intend to instigate a merger of their hotel management with the intention of creating the largest urban Spanish hotel group. This is seen as something of an emergency measure by both hoteliers who are reeling from the current financial crisis which is hitting the Spanish hotel sector particularly badly.

Both hotel chains rely heavily on business occupancy which has dropped dramatically as executives switch to electronic conferencing rather than moving staff around Spain for face-to-face meetings.

Hesperia is thought to have thrown its hat into the ring with NH Hoteles by offering in excess of €1 billion in hard cash which can only assist the ailing company in return they will receive about 25% share in and conversely NH will have around 15% rising to 25% of their new partner.

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