BHG announces signature of leasing contract for an area in Piaui
Agreement envisages implementation of a Wind Farm
As a result, the Company will proceed with its landbank divestment process
SAO PAULO, Oct. 23, 2012 /PRNewswire/ -- BHG S.A. - Brazil Hospitality Group (BM&FBovespa: BHGR3; OTC: BZHGY) announces the execution of a Property Leasing Agreement for the Evaluation of Wind Power Potential and the Installation of a Wind Farm with ZETA ENERGIA S.A. through its subsidiary, PORT BEACH EMPREENDIMENTO TURISTICO E IMOBILIARIO LTDA.
The purpose of the Agreement is to lease part of the "Fazenda Sao Roque", an area of approximately 370 hectares located in the municipality of Parnaiba, in the state of Piaui. The area is part of BHG's landbank that is outside the Company's core business.
The Agreement envisages an analysis to assess the feasibility of installing wind power generation and transmission facilities in the leased area in order to explore the capacity to generate electricity from the area's existing wind power potential.
"We are extremely satisfied with this agreement: on the one hand, we are monetizing our landbank and, on the other, we are enabling investments in alternative energy production. The maturity of wind power as an electricity source is a global reality and is beginning to take root in Brazil, with expectations of a sustainable expansion in the energy matrix in the coming years," declared Pieter J. F. van Voorst Vader, CEO of BHG S.A. - Brazil Hospitality Group.
The Agreement is for 31 years, automatically renewable for a further four years. It may also be extended further, depending on the authorization of ANEEL (Brazilian Electricity Regulatory Agency).
This is the second site in BHG's landbank that will be used to explore wind power(1). In addition, the Company has already sold two landbank sites (Projeto Sao Paulo Fair, located on Avenida Faria Lima, in Sao Paulo, and Txai Terravista Trancoso), as well as the Txai Itacare property, which houses the project's administration. The Company has also exchanged a site for 41 hotel units in a new hotel in Belo Horizonte, currently under construction.
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. It currently has 48 operational hotels in its portfolio, with 8,539 rooms, as well as 22 projects under development.
The exclusive contract with 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 corporate 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 under the ticker BZHGY. In September 2012, it announced the beginning of a Fundo de Investimento em Participacoes (FIP), a 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 BHG's key growth drivers in the coming years.
(1) The first is in Camocim.
SOURCE BHG S.A. - Brazil Hospitality Group
More by this Source
BHG anuncia hotel em Niterói, no RJ
Feb 14, 2014, 13:20 ET
Browse our custom packages or build your own to meet your unique communications needs.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.