BHG announces its results for the first quarter Hotel EBITDA posted a significant 38.3% increase over 1Q12, the EBITDA margin stood at 35.5% and consolidated EBITDA reached R$15.9 million, 39.7% up on 1Q12
SAO PAULO, May 9, 2013 /PRNewswire/ -- BHG S.A. - Brazil Hospitality Group (BM&FBovespa: BHGR3; OTC: BZHGY) announces its 1Q13 figures, which demonstrate the Company's high operating efficiency and consolidated growth in the quarter.
Hotel EBITDA (earnings before interest, taxes, depreciation and amortization) reached R$20.8 million in 1Q13, 38.3% up on 1Q12 (R$15.0 million). The hotel EBITDA margin came to 35.5% in 1Q13, 6.5 p.p. higher than the 29.0% recorded in 1Q12 and virtually flat with the 35.8% posted in 4Q12.
The net operating revenue (NOR) stood at R$58.6 million in 1Q13, 13.0% up on 1Q12. In absolute terms, revenue grew by R$6.7 million, chiefly due to the hotels in the South and Northeast regions, whose combined revenue increased by R$5.5 million.
The Company's consolidated EBITDA (which includes hotel EBITDA, real estate development activities and corporate expenses) reached R$15.9 million in 1Q13, a 39.7% increase over the R$11.3 million reported in 1Q12. The Company's consolidated EBITDA margin was 27.1% in the quarter, 5.2 p.p. higher than the consolidated EBITDA margin of 21.9% recorded in 1Q12.
During the quarter, the average daily rate of the network's hotels came to R$280.6, 7.2% up on 1Q12 and 4.9% up on 4Q12. The average occupancy rate of the Company's hotels was 64.3% in 1Q13, a 2.8 p.p. increase over 1Q12, but 2 p.p. lower than in 4Q12 due to the period's seasonality. Thanks to the Company's commercial strategy of progressively increasing the average room rate at its hotels, RevPar (Revenue per available room) increased by 12% and 1.8% over 1Q12 and 4Q12 respectively.
At the end of 1Q13, BHG posted net losses of R$3.9 million.
The Company closed the first quarter with a total of 8,691 rooms[i] in operation, distributed through 49 hotels, 16 of which wholly-owned by the Company, 26 owned by third parties, seven partially owned, and three in which the Company holds a minority interest. Considering all hotels currently under development already announced to the market, BHG will reach a total of approximately 13,077 rooms under management by the end of 2015, distributed among 69 hotels, 16 (3,030 rooms) of which wholly-owned by the Company, 42 (9,137 rooms) owned by third parties, 11 (910 rooms) partially owned, and three in which the Company holds a minority interest.
Who we are:
BHG S.A. - Brazil Hospitality Group, the country's third largest hotel chain, is the first Brazilian company to operate in the real estate segment specializing in business tourism hotels, with owned and managed hotels in the 3-, 4- and 5-star categories.
The exclusive contract with the Golden Tulip Hospitality Group in South America allows it to use the Royal Tulip (5-star), Golden Tulip (4-star) and Tulip Inn (3-star) brands. BHG also has the Soft Inn brand, used for limited-service 2-star hotels, which offer an attractive cost-benefit ratio for business tourism.
BHG is a publicly-held company with shares traded on the Novo Mercado segment of the BM&FBovespa under the ticker BHGR3, and a Level I ADR program for trading its shares on the over-the-counter (OTC) market in New York, United States, under the ticker BZHGY. In September 2012, BHG announced the beginning of a FIP- Private Equity Fund, with the purpose of investing in the development of greenfield real estate projects in the domestic hotel sector, in the midscale category. The development of greenfield hotels will be one of the key growth drivers for BHG in the coming years.
[i] Including Rio Palace Hotel's 388 rooms, awaiting court decision.
SOURCE BHG S.A. - Brazil Hospitality Group