The transactions reinforces its land bank divestments

SAO PAULO, Jan. 30, 2012 /PRNewswire/ -- BHG S.A. - Brazil Hospitality Group (BM&FBovespa: BHGR3; OTC: BZHGY) announces it has signed a Protocol of Intent with Cesto Participacoes S.A. to swap 24.5% of its equity in the company set up to develop the Singlehome Trancoso project in Trancoso, in Southern Bahia, currently part of BHG's land bank.

In exchange, Cesto Participacoes S.A. will transfer the ownership of 41 units in the future "Golden Tulip Belo Horizonte" project, a hotel venture located in downtown Belo Horizonte (MG) to BHG, who will be responsible for managing the 396-room hotel. "This is a very strategic transaction as we continue to divest our land bank, an asset that over the medium term will not contribute to the company's operating income, and we continue to reduce the costs associated with the land bank, while at the same time we will be acquiring new hotel assets, which is our core business", said Pieter J.F. Van Voorst Vader, CEO of BHG S.A – Brazil Hospitality Group.

The agreement also gives Cesto "Preferred Rights" to purchase the company's remaining 24.5% stake.

According to the agreement signed, the new partner will be responsible for all obligations related to the project in the amount proportional to the amount of equity acquired.

Who we are:

BHG S.A. - Brazil Hospitality Group is one of the leading hotel groups in Brazil, with its own and managed hotels in the 3, 4 and 5 star categories. The company is responsible for the Golden Tulip brand in South America.

BHG is a publicly held company, with shares listed on BM&FBovespa's "Novo Mercado" segment under the ticker BHGR3, and a Level I ADR Program that enables its stock to be traded on the OTC market in New York, in the United States of America, under the ticker BZHGY.

Press Office
BHG S.A. – Brazil Hospitality Group
Fernanda Pannunzio
fpannunzio@bhg.net
11.3577.2302 / 11.9668.7249

SOURCE BHG S.A. - Brazil Hospitality Group

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