SAO PAULO, March 15, 2012 /PRNewswire/ -- BHG S.A. – Brazil Hospitality Group hereby announces its operating results for the fourth quarter (4Q11) and full year 2011. Net Operating Revenue (NOR) came to R$176.6 million in 2011, a growth of 45.0% in relation to 2010. NOR in 4Q11 was R$53.8 million, 46.6% higher than 4Q10. The significant growth in revenue is the result of the Company's operational growth and of the investments made in structural improvements of the hotels, along with a competitive commercial policy focused on corporate clients.
Hotel EBITDA reached R$58.2 million in 2011, a 76.7% increase over 2010. In 4Q11, hotel EBITDA came to R$18.8 million, an increase of 74.5% over 4Q10. In terms of same-store sales (1), Hotel EBITDA stood at R$14.1 million in 4Q11, up 23.5% year-over-year.
Hotel EBITDA Margin in 2011 was 33.0%, a 5.9 p.p. increase over 2010. Considering only the hotels that have been operating for over a year (same-store sales), Hotel EBITDA margin was 33.3% in 4Q11.
BHG's consolidated EBITDA reached R$41.9 million, almost four times higher than the 2010 result of R$10.7 million. In the quarter, consolidated EBITDA totaled R$16.7 million, up 196.1% over 4Q10.
EBITDA margin reached 23.7% in 2011. During 2011, the Company posted its first operating net income since its creation, in the amount of R$9.6 million, compared to a R$6.2 million loss in 2010, thanks to (I) the scale gains in hotel operations, which diluted costs, associated with the constant control of the fixed costs and general and administrative expenses; (II) the growth in net revenue; and (III) the gains in non-operating revenue, from the sale of land in the Avenida Faria Lima region in Sao Paulo. Excluding this non-operating gain, Net Income in the year was R$2.6 million, a significant improvement over 2010.
BHG posted a RevPar of R$153.8 in 2011, up 23.0% over the 2010 amount of R$125.0, driven by the 18.2% increase in the average daily rates and the 2.7 p.p. increase in average occupancy (66.9% in the year). In terms of same-store sales, RevPar growth in the period was 31.3%.
In 2011, we continued our corporate strategy of adding at least 1,500 rooms per year through acquisitions and management of third-party hotels. Apart from the acquisition and operational start-up of Royal Tulip Rio de Janeiro, BHG signed (I) an agreement for the acquisition of 1,010 rooms, spread among five hotels in Belem, Para; (II) an agreement for the management of the future Golden Tulip Belo Horizonte (MG); (III) an agreement for the management of Address West Side, the Company's first project in Goias. In January 2012, we concluded the acquisition of Grupo Solare, which manages eight hotels in the state of Maranhao, adding 1,100 rooms to our portfolio, which will be incorporated to BHG in April.
With regard to the greenfield projects, in 2011, BHG announced the signing of new memorandums of understanding for the construction of six new hotels in Angra dos Reis (RJ), Sobral (CE), Belo Horizonte (MG), Maringa (PR) and Palmas (TO). Together with the projects in Itaguai (RJ) and Campos dos Goytacazes (RJ), announced in 2010, a total of 1,300 new rooms are under development. Besides these, in March 2012, we signed a memorandum of understanding for the development of a 140-room hotel in Campo Grande (MS), slated for completion at the end of 2013. Simultaneously, the Company continues its Policy of Divestment of its landbank – considered non-core assets – to strengthen investments in hotels focused on business tourism.
In May 2011, the Company strengthened its cash position through an operation approved by the Board of Directors - a capital increase of approximately R$85 million through the issue of 4,594,594 common shares. In early 2012, BHG launched its Level I ADR Program under the ticker BZHGY, which enables its stock to be traded on the over-the-counter market (OTC) in New York. The program was planned to optimize the entry of new investors and increase the visibility of the Company's stock.
With the incorporation of Solare in April 2012, BHG will manage 45 hotels, 21 owned and 24 third-party hotels, with a total of 8,300 rooms. The Company ended the year with a cash position of R$44.6 million and R$244.2 million in debt, for a total net debt of R$199.6 million.
In 2012, we will continue with the same growth strategy, in a sustainable and robust fashion, through acquisitions, management and development of hotels.
BHG S.A. – Brazil Hospitality Group is one of the leading hotel companies in Brazil, with its own and managed hotels in the three-, four- and five-star categories. It is responsible for the Golden Tulip brand in South America.
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.
(1) Same Store Sales = Considers only the 2,320 rooms under management in December 2010.
SOURCE BHG S.A. - Brazil Hospitality Group