BHG announces management of hotel in the state of Santa Catarina, a project to be developed in the city of Itajaí, Tulip InnMarina Plaza.

BHG S.A. - Brazil Hospitality Group ("BHG" or "Company"), following standards of best corporate governance practices, hereby announces the market and its shareholders that it signed a Memorandum of Understanding (MOU) with Ferplan Construtora e Incorporadora to develop a hotel located in the city of Itajaí, state ofSanta Catarina, thus consolidating the Company's presence in the south region of Brazil,which used to have6 hotels (5 in Paraná and 1 in Rio Grande do Sul).

Tulip InnMarina Plaza will be built in a 1,400 square meter land, with ocean view, only 500 meters from Itajai's Events Center and Avenida Beira Rio, the city's gastronomy center. In addition, it will be located in front of the future Itajai Ship Complex, an investment of R$38 million that will consolidate the city's port sector. The project comprises approximately 200 rooms, conference rooms, restaurant, gym and complete leisure.

Itajaí is considered an important industrial center of the south region, since large companies are headquartered in the city, such as Brasil Foods, Cargill, and WEG Logística (affiliate of WEG S/A). The city is also home to one of the most productive ports in Brazil, the Port of Itajai, which is country's second one in container cargo handling, expected to increase operations in the coming years. Furthermore, Itajaí receives a large number of tourists fromocean liners, with an average of 4,000 departures in the city every week, especially due to its proximity to Balneário Camburiú-an important tourist destination in Brazil's south region.

"We saw a huge demand repressed by lack of hotel structure. Itajai had become Santa Catarina's largest naval industry center and one of the largest centers in the south region of Brazil. The naval, fishing and oil industries provided and exceptional boost in city's growth. Also, nautical sports events have contributed to the development of tourism in the city," says Eduardo Bartolomeo, CEO of BHG S.A. - Brazil Hospitality Group.

Including the MOU, BHG has 48 hotels in operation, in addition to 22 projects under development in the country's main regions. Considering all hotels currently under development, BHG will reach a total of approximately 13,157 rooms under managementby the end of 2016, distributed through 70 hotels.

Rio de Janeiro, September 5, 2013

Ricardo Levy
Investor Relations Officer
BHG S.A. - BRAZIL HOSPITALITY GROUP

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