BHG Announces Results for the Third Quarter 2010

USA - English

• Latin America - español

SAO PAULO, Nov. 11, 2010 /PRNewswire-FirstCall/ -- BHG S.A. – Brazil Hospitality Group (BM&FBOVESPA: BHGR3) announced its results for the third quarter of 2010.  The company ended the period with record net revenues of R$ 35.3 million, representing an increase of 93.4% compared to the same period for the preceding year.

The Hotels EBITDA jumped from R$ 4.8 million in 3Q09 to R$10.8 million in 3Q10, representing an increase of 124.3% as a result of the strong growth of the company through hotel acquisitions during the period and efficient management focused on cost control and the capture of synergies and economies of scale.

The margin for the Hotels EBITDA jumped from 21% during 2Q10 to 30.6% in 3Q10 as a result of the efficiency achieved in the recent acquisitions, and in comparison with 3Q09, the EBITDA margin increased by 4.2 p.p.

BHG reported a significant increase in consolidated RevPar from R$106.4 in 2Q10 to R$129.0 in 3Q10, representing an increase of 21.3% for the period.

The RevPar for same-store sales, company owned hotels operated for more than one year increased from R$ 115.7 during 3Q09 to R$ 139.9 in 3Q10, representing an increase of 20.9% which is significantly higher than inflation for the period, as a result of the strong increase in demand for business hospitality due to the economic growth in Brazil, as well as the demand for hospitality services by segments of society that previously had not had access to travel.

The EBITDA margin for same-store sales company owned hotels operated for more than one year increased from 29.4% in 3Q09 to 34.2% in 3Q10, representing an increase of 4.8 p.p. for the period.

BHG ended the third quarter with R$ 162 million in cash and will continue its strategy of growth through the administration, acquisition and construction of hotels.

Who We Are:

BHG S.A. – Brazil Hospitality Group is one of the main hospitality groups in Brazil, with its own hotels as well as those under its management distributed among three, four and five star category hotels. The company is operated under the Golden Tulip brand in South America.

BHG is a publicly traded company, with shares traded on the Novo Mercado of Bovespa.

SOURCE BHG S.A. - Brazil Hospitality Group