BHG Buys Icon of Brazil's Hotel Industry in Rio de Janeiro

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• Latin America - español

SAO PAULO, Dec. 28, 2010 /PRNewswire-FirstCall/ -- BHG S.A. – Brazil Hospitality Group (BM&FBOVESPA: BHGR3) announces that it signed a contract today, December 28th, 2010, for the acquisition of 100% of the shares of Brascan Imobiliaria Hotelaria e Turismo S.A., which is the sole owner of the building located at Avenida Prefeito Mendes de Morais 222, Sao Conrado, Rio de Janeiro, currently known as "Hotel Intercontinental." With this purchase, BHG S.A. adds a major hotel to its portfolio, just 15 days after the company's entry into the northern region of Brazil with the simultaneous acquisition of two hotels in the city of Belem.

The establishment has 418 high quality apartments and offers a complete structure for business tourism, with 22 chambers for events and trade fairs, able to accommodate more than two thousand people at the same time.  The hotel has a heliport and is located only 21 km away from Santos Dumont Airport and 35 km away from Galeao International Airport.

"This acquisition adds a great icon of Brazil's hotel industry to the company's portfolio, which is closing the year with 38 hotels in its network. In 2011, we will continue with our aggressive growth rate, with plans to add at least 1,500 new rooms to our  chain.  The consolidation of our brand throughout the country will follow, and with no doubt, Rio de Janeiro will be one of our main markets," emphasizes company's president, Pieter J. F. van Voorst Vader.

In a privileged location, right over the green course of the Gavea Golf Club, the hotel is surrounded by Pedra da Gavea and the Sao Conrado beach. All of its apartments have an amazing ocean view and the hotel counts with exclusive floors with great differentials, as well as two pools, sauna, a fitness center, two tennis courts and two restaurants of international level and widely recognized in the city, representing a total of approximately 33,000 sqmt. of built area.

The company plans to modernize the hotel along 2011, enhancing even further its outstanding position in Rio de Janeiro's hotel market .

Projeto Sao Paulo Fair

In addition to the acquisition, BHG also reports that it signed an agreement to anticipate its participation in the GSV (General Sales Value) of the Projeto Sao Paulo Fair, a large real estate complex right next to Avenida Faria Lima located on a 7.2 thousand sqmt .,The complex consists out of two towers, one commercial office building and the second a residential with services.  As a result, BHG will receive R$ 52.4 million in 5 monthly installments, the first one due  in January 2011. The amount received is superior to the value initially estimated by the company (R$ 44.6 million) and recorded on the balance sheet as a receivable.

This initiative illustrates the company's strategy of monetizing its land bank of beach sites and consolidating its focus on its core business in Brazil's hotel market.

The capital resulting from the advance payment will be invested in new acquisitions, hotel management and construction, with a focus on business tourism.

The company recently announced that it will be building four thousand rooms in 30 cities in the next five years and that the first two locations have already been confirmed and signed for, at Itaguai (RJ) and Campos dos Goytacazes (RJ).

Who Are We:

BHG S.A. – Brazil Hospitality Group is one of the leading hotel companies in Brazil, with owned and managed hotels divided into 3-, 4- and 5-Star categories.  The company is responsible for the Golden Tulip brand in South America.

BHG is a public company, with its shares traded on Bovespa's Novo Mercado.

SOURCE BHG S.A. - Brazil Hospitality Group