BHG Announces 2Q12 Results Operational Indicators show the Company's continued and robust growth

Consolidated EBITDA reached R$13.7 million in the quarter, up by 85.0% year on year

Hotel EBITDA stood at R$17.1 million, up by 40.3% on 2Q11 results

SAO PAULO, Aug. 14, 2012 /PRNewswire/ -- BHG S.A. - Brazil Hospitality Group (BM&FBovespa: BHGR3; OTC: BZHGY) announces its results for the second quarter of 2012. The Company's operational indicators revealed positive growth results, with a significant increase in hotel operations.

Over the second quarter, the Company kept an effective management, with strict cost control (projects, land bank and corporate expenses), thus, achieving an excellent operating performance. The Company's Consolidated EBITDA reached R$13.7 million in 2Q12 on the R$7.4 million posted in 2Q11. The Company's Consolidated EBITDA margin reached 26.7%, up by 8.2 p.p. on the margin seen in 2Q11 (18.5%) and up by 4.7 p.ps. on the 22.0% posted in 1Q12.

Hotel EBITDA totaled R$17.1 million, up by 40.3% on 2Q11 and up by 14.7% on the R$12.2 million recorded in 1Q12. In same store sales (SSS) analysis, Hotel EBITDA reached R$13.8 million in the quarter, up by 10.8% year on year.

Hotel EBITDA margin reached 33.4% in 2Q12, up by 2.9 p.p. over 2Q11. In same store sales terms, the increase in relation to 2Q11 was 1.1 p.p., reflecting the positive results of measures implemented to improve hotels.

Over the second quarter, the average daily rate grew by 16.3% year on year, in line with the Company's business strategy; accordingly, RevPar (revenue per available room) increased to R$157.8 in the quarter, up by 3.7% over 2Q11 (R$152.2), more than offsetting lower occupancy rate between periods.

In the same store sales analysis, the average daily rate climbed by 13.6%, reaching R$245.4 in 2Q12. RevPar moved up by 6.6% year on year, from R$146.6 to R$156.2 in 2Q12. Occupancy rate remained in line quarter on quarter, down by 4.2 p.p. compared to 2Q11. The Company closed 2Q12 with Net Revenue from hotel business of R$51.1 million, up by 28.3% year on year (R$39.8 million). If we consider same store sales, our Net Revenue reached R$41.4 million, up by 7.1% on the R$38.6 million recorded in 2Q11.

Although Consolidated EBITDA grew by 85.0% over last year, the Company closes the second half of 2012 with a net loss of R$5.0 million, versus a net income R$0.7 million in 2Q11, chiefly driven by higher depreciation of R$2.2 million and higher negative balance of financial result in the amount of R$8.0 million, related to the funding to finance continued structural improvements in recently acquired hotels, thus, increasing the quality of services rendered in our hotels.

Media Relations
BHG S.A. - Brazil Hospitality Group
Fernanda Pannunzio
fpannunzio@bhg.net
+55.11.3577.2302 / +55.11.99668.7249
www.bhg.net

SOURCE BHG S.A. - Brazil Hospitality Group



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