BHG's Third Quarter Figures Show Strong Growth

Consolidated EBITDA reached R$17.2 million, 62.7% up on 3Q11; Hotel EBITDA totaled R$20.2 million, 43.2% up from R$14.1 million in 3Q11

Nov 13, 2012, 16:24 ET from BHG S.A. - Brazil Hospitality Group

SAO PAULO, Nov. 13, 2012 /PRNewswire/ -- BHG S.A. – Brazil Hospitality Group (BM&FBovespa: BHGR3; OTC: BZHGY ) announces its results for the third quarter of 2012, with excellent operating indicators. RevPar (revenue per available room) grew by 8.8% over 3Q11, reaching R$167.3.

Hotel EBITDA totaled R$20.2 million, 43.2% up on 3Q11 and 18.2% more than in 2Q11. The hotel EBITDA margin came in as 35.6% in the period.

Consolidated EBITDA (hotel EBITDA, real estate development activities, revenue from non-operated properties and corporate expenses) totaled R$17.2 million in the third quarter of 2012, 62.7% up on 3Q11 and 25.6% higher than in 2Q12. The EBITDA margin came to 30.3%, a 5.3 p.p. increase over 3Q11 and 3.6 p.p. up on 2Q12.

Net revenue came to R$56.7 million, 34.1% up from R$42.3 million in 3Q11 and 10.9% higher than the R$51.1 million recorded in 2Q12.  

The average daily rate grew by 10.8% year on year to R$255.0, in line with the Company's commercial strategy. In quarter-on-quarter terms, the average daily rate edged down by 1.5%, but was offset by a positive variation of 4.7 p.p. in the average occupancy rate, pushing RevPar up by 6.0%.

The Company recorded a net loss of R$1.0 million, in line with the R$1.0 million net loss recorded in 3Q11. Net debt came to R$253.2 million on September 30, 2012, 3.6% up on June 30, 2012.

BHG has 8,151 rooms (3,377 of which owned), an increase of 405 rooms over June 2012. Considering all hotels currently under development, including the selected-service Tulip Inns and the others that will only be managed by the Company, BHG will reach a total of approximately 13,027 rooms under management by the end of 2015, distributed through 70 hotels, 16 (3,030 rooms) of which wholly-owned by the Company, 37 (8,889 rooms) owned by third parties, 17 (1,108 rooms) partially owned, and 3 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 Company currently has 48 hotels, with 8,539 rooms in operation, and 22 projects under development.

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.

Media Relations
BHG S.A. – Brazil Hospitality Group
Fernanda Pannunzio
11.3577.2302 / 11.99668.7249

SOURCE BHG S.A. - Brazil Hospitality Group