BHG Announces Results for the Second Quarter of 2010

Company closes the period with Net Revenues 31.4% above the results for 1Q10 and EBITDA of R$ 6.1 million

Aug 16, 2010, 11:34 ET from BHG S.A. - Brazil Hospitality Group

SAO PAULO, Aug. 16 /PRNewswire-FirstCall/ -- BHG S.A. - Brazil Hospitality Group (BM&FBOVESPA: BHGR3) has announced the results of its activities for the second quarter of 2010. The Company ended the period with Net Revenues of R$ 29 million, 72.9% above the same period in 2Q09 and up by 31.4% when compared to 1Q10. The numbers released take into consideration 4 acquisitions made at the end of last year and the beginning of this year,* which were not taken into account in the figures for the first quarter.

Although June was an atypical month because of the World Cup, which reduced business tourism during the period, the RevPar for hotels that have been operated for more than one year increased from R$ 109.1 in 2Q09 to R$ 125.6 in 2Q10, which constitutes an increase of 15.1%. The occupancy rate climbed from 60.2% to 65.3% while the daily average rose 6.2%, going from R$181.2 in 2Q09 to R$192.4 in 2Q10. These data reflect the operational improvement of the hotels after the initial phase of adjustment to network standards and the capture of commercial and operational synergies.  

Hotel EBITDA came to R$ 6.1 million. This amount indicates an increase of 45.4% when compared to 2Q09, but a decline of 6.8% in relation to the first quarter of 2010 (R$ 6.5 million). The figure reflects the seasonality of the industry, as well as an increase in general and administrative expenses for hotel operations necessary for administrative structuring in areas such as training, quality and operational support to ensure the Company's future growth. In the first six months of the year Hotel EBITDA came to R$12.7 million compared to R$10 million in the first half of 2009. In April, the Company took over operation of the Golden Tulip Recife Palace, in Recife, as well as the Golden Tulip Rio Vermelho, in Salvador.

Actual EBITDA for the Company (including expenses of the Holding company and expenses for real estate development in Hotel EBITDA), prior to GR capital, came to negative R$ 8 thousand. Despite the entry of 4 of the company's new acquisitions into the network, the expenses of the Holding company added to the expenses on real estate development remained practically stable, totaling R$ 6.1 million in 2Q10 compared to R$ 6.2 million in 1Q10.

In 2Q10, BHG acquired its first hotel in Mato Grosso: the Hotel Odara, now called the Golden Tulip Pantanal. For this acquisition, the Company used part of its cash (also used for renovation and expansion of the hotels).

* The 4 acquisitions were: Hoteis Albert International (Porto Alegre), Golden Tulip Rio Vermelho (Salvador); Golden Tulip Recife Palace (Recife); and Golden Tulip Internacional Foz (Foz do Iguacu).

Finally, during the second quarter, Brazil Hospitality Group distributed a press release upon obtaining all environmental licenses for proceeding with the tourist hotel development Txai Ganchos, in an area located in Governador Celso Ramos (Santa Catarina). The Company is awaiting the registration of incorporation.


BHG S.A. - Brazil Hospitality Group is the third largest company in Brazil's hotel industry, with hotels divided into categories of 3, 4 and 5 stars. The Company is responsible for the Golden Tulip brand in South America and owns 32 hotels, with a presence in 9 Brazilian states as well as the Federal District. Shares of BHG stock are traded on Bovespa's Novo Mercado.

Media Contact

BHG S.A. - Brazil Hospitality Group

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SOURCE BHG S.A. - Brazil Hospitality Group