BHG Announces First Quarter 2010 Results

SAO PAULO, May 17 /PRNewswire-FirstCall/ -- BHG S.A. - Brazil Hospitality Group (BM&FBOVESPA: BHGR3) announces its first quarter 2010 results. The company closed the period with R$ 22.1 million in net revenue, the company's highest ever and 7.7% above the same period of last year.

Hotel EBITDA showed significant improvement of R$ 6.6 million, an increase of 12.5% compared to the first quarter 2009 and of 47.0% compared to the fourth quarter of 2009. This increase in results is even more significant considering that recent acquisitions have not yet impacted 1Q10 results.

In 1Q10, BHG acquired the Golden Tulip Recife Palace, in Recife, a 4-star 299-room hotel; the 214-room Golden Tulip Internacional Foz, in Foz do Iguacu; and increased its participation in the Golden Tulip Rio Vermelho, a 4-star 202-room hotel in Salvador, by 25%, bringing the company's hotel portfolio to a total of 5,599 rooms, of which 2,175 are owned. To finance the acquisitions, the Company obtained R$ 39 million in long-term loans, increasing its total debt to R$ 106.6 million. At the end of 1Q10 the company's total cash was of R$204 million, thus bringing the Company's liquid cash to R$97.5 million.

Prior to extraordinary expenses and GR Capital, BHG had an EBITDA of R$ 0.4 million, an improvement over the results presented in 2009. This is due largely to improved efficiency in hotel activities, reduction in Realty Development Expenses and, especially, a reduction of General and Administrative Expenses achieved through the post-incorporation synergy initiated in February 2009 and completed during the year.

Liquid loss for the quarter was of R$ 2.1 million, 73.6% lower than the loss registered in the fourth quarter 2009. The Golden Tulip Belas Artes and the Albert (future Tulip Inn Centro Historico) are under renovation, while the expansion work continues in over 100 rooms at the Golden Tulip Regente hotel in Copacabana, Rio de Janeiro.

Some of the most significant events of this quarter were the change of the Company name to BHG - Brazil Hospitality Group, the split of Company-issued stock into 20 (twenty) new shares per existing share, as well as the trading of stock in fractioned lots. After the change, BHG's new ticker symbol became BHGR3.

Who We Are:

BHG S.A. - Brazil Hospitality Group is the third-largest hotel company in Brazil, with hotels in the 3, 4, and 5-star categories. The company manages the Golden Tulip brand in South America and has 31 hotels, located in 7 states and the Federal District. BHG stock is traded on the Bovespa Novo Mercado.

    Communications Department
    BHG S.A. - Brazil Hospitality Group
    Fernanda Pannunzio
    [email protected]
    11.3577.2302 / 11.9668.7249

SOURCE BHG S.A. - Brazil Hospitality Group