Acquisition of Hotel Marina Palace, located at Leblon Beach, Rio de Janeiro
BHG S.A. - Brazil Hospitality Group ("Company"), following the best corporate governance standards, hereby informs the market and its shareholders that it has entered into an agreement to acquire the shares representing the capital stock of LM Empreendimentos e Participações S.A., which owns the real estate property located at Avenida Delfim Moreira, 630 - Leblon, in the city and state of Rio de Janeiro, currently named "Hotel Marina Palace".
The hotel is located opposite Leblon beach, which is considered one of Rio de Janeiro's most beautiful and charming beaches, and has 150 rooms with ocean views. The facilities include swimming pool, sauna and fitness center, and the hotel also offers complete infrastructure for events, with capacity for approximately 560 people. In addition, there are two world-class restaurants in the hotel.
BHG plans to invest R$15 million to improve and expand the hotel in order to adjust it to the standards of the international hotel chain Golden Tulip Hospitality Group, represented by us in South America. With this acquisition, BHG has 5 hotels in the city of Rio de Janeiro, all located in upscale neighborhoods and with ocean views, totaling 1,292 rooms in the city.
This acquisition is in line with the Company's strategy of investing in and operating hotels with capacity for increased operating efficiency and scale gains in cities with high potential for business tourism, thus reinforcing BHG's prominent position in one of the most important hotel markets in Brazil, and increasing to 8,689 the number of rooms in the Company's portfolio.
The final acquisition of the shares representing the capital of LM Empreendimentos e Participações S.A. is conditioned to compliance with the preceding provisions envisaged in the respective purchase agreement and, when the operation is concluded, the Company will inform the market if the acquisition will entail the call for an extraordinary shareholders' meeting, pursuant to Article 256 of Law 6,404/76, if applicable.
Click here to access the full version.
São Paulo, October 17, 2013.
BHG S.A. - Brazil Hospitality Group
Chief Financial and Investor Relations Officer