The board of NH hotels has unanimously turned down a merger offer with the rival Barceló group.
In a statement it said that the amount Barceló proposed “in no way reflected the true value of the company”.
In November Barceló made an offer to NH to merge the two Spanish hotel giants which valued NH at 2.48 billion euros.
The NH board also said that Barceló's offer hadn't taken into account the value of its property portfolio in urban areas across Spain and the efficiency of its operation.
It went on to state its confidence in its current strategic plan, solid growth and debt reduction.
Barceló replied to the rejection saying it was disappointed that NH had not agreed to create a leading European hotel chain and that it would “forget about the subject”.
At the time of the offer in November analysts had said it was possibly a good strategic option for both companies, as NH is focused on urban hotels and the business market and Barceló more on the leisure market and resort hotels.