NORGANI HOTELS ASA

Q4.06QUARTERLY REPORT

NORGANI HOTELS ASA

Agenda Highlights

Hotel property market

Financial performance Q4 2006

Outlook for 2007

NORGANI HOTELS ASA Q3.06 – 14 Nov 06 P. 3

Highlights

NORGANI HOTELS ASA

Continued strong performance Pre tax return on paid in equity 51%, ahead of goal of

15%

Operating net NOK 515 mill (120)

Net profit NOK 710 mill (225) – Incl. fair value adj on properties of NOK 613 mill (200)

Cash flow from sale of 7 hotels NOK 103 (0) mill

Proposed dividend NOK 4.00 per share (0.00)

NORGANI HOTELS ASA

Six hotels sold in Q4 Four Danish hotels - Clarion Hotel Copenhagen and the

Scandic Hotels in Hvidovre, Kolding and Glostrup– Sale price NOK 686 mill – Cash-flow NOK 91 mill

Hotel Linné in Uppsala, Sweden– Sale price NOK 68 mill– Cash-flow NOK 3 mill

Lappinporti in Rovaniemi, Finland– Sale price NOK 6 mill– Cash-flow NOK 2 mill

NORGANI HOTELS ASA

Events after 2006-12-31 Gunghästen, Malmö sold in Feb 2007

– Sales price SEK 81 mill– Cash-flow SEK 10 mill

NORGANI HOTELS ASANORGANI HOTELS ASA

Hotel property market

NORGANI HOTELS ASA

Strong fundamentals for hotel property RevPAR increased in all Nordic countries – expected to

continue

Strong demand for business and leisure travel

Operators are divesting properties and more investment activities leads to increased liquidity and transparency

Norgani maintains its strong competitive position

Risk in hotel investments overestimated

NORGANI HOTELS ASA

Source: SEB Enskilds

90

105

120

135

150

165

180

195

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Inde

x

RevPAR up in all Nordic countries

Change in

RevPAR,%

Occ,%

Sweden +7.3 49.7

Norway +9.0 54.6

Finland +9.2 52.2

Denmark 58.2

NORGANI HOTELS ASA

7,00021%

6,00018%

5,00015%

4,00012%

3,000 9%

2,000 6%

1,000 3%

0 0%

2001 2002 2003 2004 2005E 2006E 2016P

High growth in global travel and tourism consumption

USD

bn

Personal Travel & TourismBusiness Travel & TourismTotal annual change (RHS)

Source: WTTC

NORGANI HOTELS ASA

Increasing European hotel transactions volume

NORGANI HOTELS ASA

Norgani – Europe’s 5th largest hotel investor

Hotel Investor Hotels

Rooms

Type of investor

Starwood Capital 931 - Private Equity

Fonciere des Murs 204 25 000 REIT

Royal Bank of Scotland 99 20 832 Private Equity

Whitehall (Goldman Sachs)

112 15 511 Private Equity

Norgani Hotels ASA 79 13 284 Property Company

Home Properties (Capona)

57 8 462 Property Company

London & Regional 43 7 609 Property Company

Pandox AB 33 7 137 Property Company

Goldman Sachs 39 6 822 Private Equity

Blackstone Group 20 5 525 Private Equity

Source: Jones Lang LaSalle 2006

NORGANI HOTELS ASA

Norgani’s size and specialization –a competitive advantage

Good knowledge and insight in hotel industry

A unique opportunity to a long term cooperation with operators– Mutual, further development of hotel properties and business– Discuss and negotiate groups of hotels, not just individual

properties– Financial capacity and flexibility

NORGANI HOTELS ASA

The market’s view on risk and return

Return

Risk

office

hotel

NORGANI HOTELS ASA

Source: ABG Sundal Collier* Adjusted for vacancy

Office revenue* and RevPAR, Oslo

0,00

0,20

0,40

0,60

0,80

1,00

1,20

1,40

1,60

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Office revenues RevPar

NORGANI HOTELS ASA

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Net RentSEK/sqm

0

100

200

300

400

500

600

700

800

900

1 000

RevPAR

SEK/sqmRevPAR

Source : Nutek och SCB, Newsec * Adjusted for vacancy

Office revenue* and RevPAR, Stockholm

NORGANI HOTELS ASANORGANI HOTELS ASA

Financial performance

NORGANI HOTELS ASA

Q4 key figuresIncome statement (NOK million) 4Q06 4Q05 2006 2005

Rental revenue 185.4 67.4 574.4 135.6

- - guarantees 3.1 3.0 20.7 6.9

Operating net 166.6 59.0 514.9 119.6

Net gain on property disposals 58.2 0 65.7 0

Fair value adjustments 480.8 189.9 671.7 199.7

- - properties 422.1 189.9 613.0 199.7

Profit before tax 587.7 211.3 932.1 234.9

Net profit 407.9 201.5 709.9 225.1

Balance sheet (NOK million) 2006 2005

Investment properties 9 452.1 6 418.8

Shareholders’ equity 3 016.4 1 801.7

Total assets 10 494.5 6 807.9

NORGANI HOTELS ASA

Q4 key figuresKey figures 4Q06 4Q05 2006 2005

Return on equity % - - 29.5 -

Pre tax return on paid in equity % - - 50.8 34.7

Earning per share NOK 10.31 6.59 17.94 7.36

Operating and administrative expenses/revenue

% 30.4

31.5

20.0

38.5

Cash flow from operations, per share NOK 2.94 0.68 6.82 1.13

Book value per share NOK - - 76.22 58.94

Number of shares ‘000 39 574 30 574 39 574 30 574

Average number of shares ‘000 39 574 26 392 34 395 25 054

NORGANI HOTELS ASA

Property value adjustments Based on a discounted cash flow method

– Total increase in value of property portfolio in 2006 of 7.4%

External valuation of all properties over 2 years

Total market value of the portfolio NOK 9 452 mill– Fair value adjustments 2006 NOK 613 mill (200)

NORGANI HOTELS ASANORGANI HOTELS ASA

Outlook

NORGANI HOTELS ASA

Outlook for 2007 The hotel property market remains attractive and offer

opportunities

Norgani will continue to expand and adjust the hotel-portfolio with focus on diversification among operators and markets