BHG Announces First Acquisition in Mato Grosso

SAO PAULO, July 6 /PRNewswire-FirstCall/ -- BHG S.A. - Brazil Hospitality Group (BM&FBOVESPA: BHGR3) announces its purchase of the Hotel Odara in Cuiaba.  The property marks BHG's start of operations in Mato Grosso.

Rated as one of the state's top hotels by the 4 Rodas Guide, the property is in one of the city's most important locations, just 1 Km from downtown Cuiaba, 8 Km from the Candido Rondon International Airport, and within easy access of the state's main tourist destinations.

"This new acquisition is part of BHG's strategic plan: investments in large urban areas, with a focus on business travel.  Cuiaba is currently one of Brazil's top agribusiness hubs, in addition to being close to some of the country's main tourist destinations such as Pantanal and Chapada dos Guimaraes," said Pieter Jacobus F. van Voorst Vader, President of BHG S.A. - Brazil Hospitality Group. "The city has also been selected as one of the hosts of the 2014 World Cup," he added.  

With a total area of 6,630 square meters, the Hotel Odara has 104 rooms, two conference rooms, two meeting rooms, a Business Center, restaurant, bar, fitness center, and a parking deck on the lower level.  The purchase agreement includes a 640 square meter lot next to the site that currently serves as a parking lot and can later be used to expand the hotel.  

The property will fly the Golden Tulip flag, which has a 4-star standard. With the acquisition of this new hotel, BHG, the country's third-largest hotel company, will now manage 5,703 rooms.

BHG S.A. - Brazil Hospitality Group is one of the largest hotel groups in Brazil. We manage 32 hotels, 16 of our own and the other 16 managed by us, divided into three, four and five-star categories.

The brand was created after the merger of Invest Tur Brasil and Latin America Hotels (LAHotels), accomplished in February 2009, being  consolidated during the remainder of the year.

The name choice highlights the concept of hospitality in its widest aspect, one of the most important characteristics in the art of receiving guests, and it also reminds us of hotel business as well as real estate development in the areas designed for projects for a second home, always associated to a luxury resort. The logo shows Brazil standing out in relation to Latin America, reflecting future ambition to grow all over the continent, in a sustainable way.  

Brazil Hospitality Group has an exclusive agreement with Golden Tulip Hospitality Group in South America, using the brands Royal Tulip, Golden Tulip and Tulip Inn. In our hotel portfolio, we also have the exclusive Txai Resort, in Itacare (Bahia), awarded by the guide on luxurious hotels, Conde Nast Johansens, as the "Most Excellent Resort" in South America in 2007 and also regarded as one of the best ten tourist destinations of the world in 2008 by The New York Times.  

The company seeks good opportunities for management, acquisition or construction of hotels, mainly in the capital cities in Brazil. To make decisions, the company carries out careful viability analysis. The business model is based on policy for serious negotiation, with efficient management with a view to merit values and also recognizing the importance of a cohesive and aligned team.

The group maintains unique position in the national competitive scenario. In the beginning of August 2009, we took the lead for the Complexo Golden Tulip Brasilia Alvorada operations, which is the most important hotel complex in Brasilia. Consisting of a hotel five-star and a hotel four-star, it received respectively, the Royal Tulip and Golden Tulip flags. The Royal Tulip unit is designed to five-star hotel standards, offering the most elegant and luxurious facilities, with comfort and customized services.

In December 2009, two new acquisitions in one week consolidated the achievements of Brazil Hospitality Group among the biggest on the Brazilian market. It refers to the acquisitions of the economic class standard Hoteis Albert International, in Porto Alegre (Rio Grande do Sul) and the purchase of shares in the four-star Condominio do Edificio Beira Mar, in Salvador (Bahia), in Rio Vermelho, two important market.

BHG (BHGR3) shares are traded on the Sao Paulo Stock Exchange (Bovespa).

BACKGROUND INFORMATION

Founded in March 2007, Invest Tur Brasil - Desenvolvimento Imobiliario Turistico S.A. was the first Brazilian company to operate specifically in the tourism-oriented real estate segment, focused especially on leisure and business tourism.

In July 2007, Invest Tur made its Initial Public Offering (IPO) in the Sao Paulo stock exchange (BM&F BOVESPA), the fourth biggest IPO of the real estate sector in Brazil, raising a total of R$ 945 million of gross proceeds.

On February 18th, 2009 Invest Tur has entered into a new phase in regards to the consolidation of the Company as an important player in the tourism segment in Brazil. The Extraordinary Shareholders Meeting approved the incorporation of LAHotels by Invest Tur and, therefore, Latin America Hotels LLC and its shareholders became Invest Tur's controlling shareholders.

LAHotels was established in December 2007, aiming to acquire and manage hotels or companies that own hotel assets in Brazil and in other countries in Latin America.

In 18 months of operations, LAHotels has become the third largest hotel company in Brazil.

BHG S.A. - BRAZIL HOSPITALITY GROUP HOTELS

SOURCE BHG S.A. - Brazil Hospitality Group