Hotel Rio Palace: Company Appeals First-Instance Ruling

SAO PAULO, Jan. 11, 2012 /PRNewswire/ -- BHG S.A.  – Brazil Hospitality Group (BM&FBovespa: BHGR3) announces it appealed a first-instance ruling by the 6th Corporate Court of the Rio de Janeiro Judicial District recognizing the supposed "right of preference" of Nova Riotel Empreendimentos Hoteleiros Ltda., as lessee, in the acquisition of the Hotel Rio Palace, located in Rio de Janeiro.

The property, which currently operates under the "Sofitel" brand, was acquired by BHG through a definitive deed of purchase and sale entered into on August 17, 2011, by Veplan Hoteis e Turismo S.A. and Melongena Empreendimentos 1 Ltda. (a company part of the BHG Group). The definitive deed of purchase was drawn up after the ruling by the 4th Civil Chamber of the State Appellate Court of Rio de Janeiro, which, on July 6, 2011, unanimously approved the Private Pledge of Purchase and Sale Instrument signed by BHG and Veplan on August 26, 2010 and amended on September 2, 2010.

However, a first-instance ruling by the 6th Corporate Court of the Rio de Janeiro Judicial District recognized the supposed "right of preference" of Nova Riotel Empreendimentos Hoteleiros Ltda., as lessee, to acquire the hotel, ignoring the fact that the property was acquired by BHG within the legal sphere.

As a result of this ruling, on January 9, 2012, the Company filed an appeal with the 4th Civil Chamber of the State Appellate Court of Rio de Janeiro to overrule the first-instance ruling on Nova Riotel's alleged "right of preference."  

The position is defended by the CEO of BHG S.A. – Brazil Hospitality Group, Pieter J. F. van Voorst Vader: "We believe we have very strong arguments in our favor, including the support of reports from renowned legal experts in the domestic scenario and manifestations by the Public Prosecutor's Office against the right of preference alleged by Nova Riotel on a number of opportunities throughout the process. We will continue to take all the necessary measures to overrule the decision that recognized Nova Riotel's supposed 'right of preference' and ensure that the validity and legitimacy of the Hotel's acquisition by BHG is confirmed."

About BHG:

BHG S.A. – Brazil Hospitality Group is one of the leading hotel companies in Brazil, with its owned and managed hotels in the three, four and five-star categories. The Company is responsible for the Golden Tulip brand in South America.

BHG is a publicly-held company, with shares listed on the BM&FBovespa's Novo Mercado trading segment under the ticker BHGR3.

Press Services
BHG S.A. – Brazil Hospitality Group
Fernanda Pannunzio
[email protected]
11.3577.2302 / 11.9668.7249

SOURCE BHG S.A. - Brazil Hospitality Group

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