BHG Announces Results for the First Quarter of 2012

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• Brazil - Português
• Latin America - español

SAO PAULO, May 10, 2012 /PRNewswire/ -- BHG S.A. – Brazil Hospitality Group (BM&FBovespa: BHGR3; OTC: BZHGY) announces its results for the first quarter of 2012, with a significant increase in the average room rate and RevPar. Net revenue moved by 26.8% over 1Q11, from R$40.8 million to R$51.7 million in 1Q12.

Hotel EBITDA climbed by 12.5% over 1Q11, from R$13.2 million to R$14.9 million.

In 1Q12, room rates averaged R$261,80, up by 16.0% and 9.4% on 1Q11 and 4Q11, respectively. The progressive room rate upturn is in line with the Company's sales strategy of increasing room rates in its hotels.

In 1Q12, occupancy averaged 61.5%, down by 3.8% on 1Q11, impacted by seasonality in the first quarter. However, thanks to the higher average room rate, RevPar (revenue per available room) came to R$161,10, up by 0.6% and 9.3% on 4Q11 and 1Q11, respectively.

The Company's consolidated EBITDA (which includes hotel EBITDA, real-estate development activities and corporate expenses) reached R$11.4 million in 1Q12, up by 57.3% on the R$7.2 million posted in 1Q11. BHG's consolidated EBITDA margin stood at 22.0% in 1Q12, 4.3 p.p. up on the 17.7% recorded in 1Q11.

A same store sales (SSS) analysis shows more clearly the excellent operating results of BHG's hotels(1). Considering only the hotels in the Company's portfolio in 1Q11, RevPar grew by 15.8% over 1Q11 and 5.6% over 4Q11, to R$164.50 in 1Q12.

Also in same-store terms, the average room rate climbed by 19.5% in the Company's 2,553 owned rooms (based on January 2011), from R$216,10 to R$258,30 at the close of 1Q12. SSS RevPar increased by 15.8%, from R$142,10 in 1Q11 to R$164,50 in 1Q12.

SSS hotel EBITDA stood at R$13.9 million in 1Q12, up by 7.5% year on year. The hotel EBITDA margin of hotels in the portfolio for more than one year was 31.8% in 1Q12.

BHG closed 1Q12 with 7,223 rooms in operation, 3,152 of which owned, distributed through 44 hotels, of which 15 are wholly-owned by the Company, 24 are owned by third parties, 5 are partially owned and 3 are hotels in which the Company holds a minority interest. Including the non-consolidated acquisitions of two hotels in Belem and the Rio Palace Hotel property (awaiting judicial ruling) and excluding any new hotel acquisitions or the management of third party hotels, the Company's will close the year with 8,711 rooms, 3,765 of which owned, distributed through 47 hotels, 16 of which are wholly-owned by the Company, 24 are owned by third parties, 7 are partially owned and 3 are hotels in which the Company holds a minority interest.

The Company recorded a net loss of R$2.5 million in 1Q12, versus net income of R$6.3 million in 1Q11 and R$3.7 million in 4Q11. The negative result was chiefly driven by: (i) the seasonal effect in 1Q11 and its impact on revenue and (ii) the non-recurring R$7.0 million from the sale of the Avenida Brigadeiro Faria Lima property in 1Q11, leading to net income in that quarter.

Media Relations
BHG S.A. – Brazil Hospitality Group
Fernanda Pannunzio
[email protected]
11.3577.2302 / 11.9668.7249

(1) Same Store Sales: Golden Tulip Regente (RJ), Golden Tulip Continental (RJ), Tulip Inn Copacabana (RJ), Golden Tulip Porto Bali (RJ), Golden Tulip Belas Artes (SP), Tulip Inn Santa Felicidade (PR), Tulip Inn Campo Largo (PR), Tulip Inn Batel (PR), Tulip Inn Sao Jose dos Pinhais (PR), Golden Tulip Internacional Foz (PR), Tulip Inn Centro Historico (RS), Golden Tulip Rio Vermelho (BA), Golden Tulip Recife Palace (PE), Golden Tulip Pantanal (MT), Tulip Inn Nazare (PA), Tulip Inn Batista Campos (PA), Tulip Inn Centro de Convencoes (BA).

SOURCE BHG S.A. - Brazil Hospitality Group