The captain spoke to the media at the Bernabeu on Monday evening ahead of tomorrow night’s Group H fixture.
La Liga champions Madrid clinched their 12th European Cup/Champions League crown against Juventus in Cardiff in June.
Both teams go into Matchday Three with two wins out of two against Borussia Dortmund and APOEL.
“We have built confidence as a group from the results against Dortmund and APOEL, but nothing has been done yet,” said Hugo.
“There are a lot of games ahead and this double confrontation against Real Madrid will be very important for us.