BHG Ends 2009 With R$2.6 Million Net Profit

Hotelier reaches R$19.3 million accumulated EBITDA, up 73% from 2008

News provided by

BHG

Mar 26, 2010, 12:20 ET

SAO PAULO, March 26 /PRNewswire-FirstCall/ -- BHG S.A. - Brazil Hospitality Group ended 2009 with a consolidated net profit of R$2.6 million compared to a loss of R$214.8 million in 2008. The 2008 loss was mainly due to a R$198.2 million provision to reduce asset recovery value.

BHG S.A. - Brazil Hospitality Group accounted for an EBITDA of R$19.3 million for the year in the hotel sector, up 73% compared to the previous year. During the fourth quarter, EBITDA was R$4.5 million. The result is due to the consolidation of the company's hotel portfolio and the implementation of improvement plans in 2009.

The company's hotel EBITDA margin was 25.1% in 2009, 2.1 percentage points higher than in 2008. This improvement is attributed to greater operational efficiency measures in hotels, in addition to tighter cost control and broader scale due to a larger portfolio. The company's objective is to achieve a 30% EBITDA margin.

During the fourth quarter, BHG had a total gross income of R$23.6 million, up 17% compared to R$20.2 million during the previous quarter and a 26% increase compared to R$18.7 million during the same quarter in 2008.

The increase in gross revenue was due mostly to an improvement in occupancy and in the average daily rate at the hotels. However, year-on-year revenue increase was due to the company's addition of hotels. On the same note, the gross operating revenue was up 58% in 2009, going from R$53.7 million in 2008 to R$84.9 million in 2009. During Q409, BHG's financial result was R$2.9 million, down 82% and 34% respectively from the R$16.4 million and R$4.4 million during Q408 and Q309. This was due to the reduction in financial revenue generated by the cutback in cash for financial transactions, after payments of close to R$300 million for capital reduction, stock repurchase plans, and recent hotel acquisitions.

    Public Relations
    BHG S.A. - Brazil Hospitality Group
    Fernanda Pannunzio
    [email protected]
    +55-11-3577-2302 / +55-11-9668-7249

SOURCE BHG

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