BHG Begins its Aggressive Strategy of Developing Economic Hotels

The company will build its first limited services hotel in Itaguai, in Rio de Janeiro

Oct 15, 2010, 11:01 ET from BHG S.A. - Brazil Hospitality Group

SAO PAULO, Oct. 15 /PRNewswire/ -- BHG S.A. – Brazil Hospitality Group (BM&FBOVESPA: BHGR3) reports the signing of a Memorandum of Understanding with the company AC Lobato for the development of one Hotel Tulip Inn in Itaguai, in Rio de Janeiro. The hotel will provide standard 3-star limited services and will be the first hotel built by BHG, the third largest hotel group in Brazil.

The Itaguai hotel will have 189 rooms, a restaurant with the capacity to serve around 100 customers, in addition to a parking facility with 200 spots.

According to BHG president Pieter Jacobus F. van Voorst Vader, "the Itaguai project will have new characteristics, which we call limited services, a method of reducing the daily rate without diminishing the quality of the product". This is the first project in the company's ambitious development and construction plan for the next 5 years; a plan comprising the construction of more than 4,000 rooms in 30 cities with strong demand and growth potential in business tourism, like Itaguai.

The city, divided by Rio-Santos interstate road, is 80 km from Rio de Janeiro and is in the middle of the greatest axis of economic development in the state of Rio de Janeiro. The Itaguai Port expansion project (the future Sudeste Port), the connection with the Metropolitan Arc, and the investments of big companies such as CSN, Vale, LLX, Odebrecht and Petrobras will guide the region's development. One recent example of economic potential in the region is the establishment, which in its final phase, of ThyssenKrupp CSA's iron and steel complex with an estimated investment of around 4.5 billion Euros. This complex will include two port terminals and could increase the national iron market's exportation by as much as 40%.

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BHG S.A. – Brazil Hospitality Group

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SOURCE BHG S.A. - Brazil Hospitality Group