Material Fact 7th Share Buyback Program

BHG S.A. - Brazil Hospitality Group (BHGR3) ("BHG" or "Company"), pursuant to the terms of CVM Instruction 358, of May 14, 1999, as amended, hereby announces that on this date, its Board of Directors authorized: (a) the completion of the Company's 6th share buyback program begun on July 7, 2013, through which 749,000 common Company shares were acquired to be held in treasury for future sale or cancellation; and (b) a new program to acquire Company shares to be held in treasury for future sale or cancellation, under the terms of Article 20, xi, of the Company's Bylaws, of Article 30, § 1º, b, of Law no. 6.404/76 and CVM Instruction 10/80, with the following characteristics:

Objective: The acquisition of common shares issued by the Company, to be held in treasury, with no capital reduction, for future sale or cancellation;

Term: The share may be repurchased for a period of 365 days, from August 6, 2014 until August 6, 2015;

Number of Shares Outstanding: On this date, there are 43,905,861 common shares outstanding (as defined by CVM Instruction 10/80);

Number of shares to be acquired: The Company may acquire up to 3,089,443 common shares, which, added to those already held in treasury, represent approximately 10% of the Company's total outstanding shares;

Price: The shares will be purchased at market price on the BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros; and

Brokers: The following are authorized to broker the acquisitions: (i) Credit Suisse Brasil S.A. Corretora de Títulos e Valores Mobiliários - Av. Brig. Faria Lima, 3064, 13º andar, São Paulo-SP; (ii) Itaú Corretora de Valores S.A. - Av. Engenheiro Armando de Arruda Pereira, 707, 15º andar, Torre Eudoro Villela, São Paulo-SP; (iii) BES Securities do Brasil S.A. - Corretora de Câmbio e Valores Mobiliários - Av. Brig. Faria Lima, 3729, 6º andar, São Paulo-SP; (iv) Merrill Lynch S.A. C.T.V.M. - Av. Brig. Faria Lima, 3.400, 18º andar, São Paulo-SP. (v) XP Investimentos CCTVM S.A. - Av. Borges de Medeiros, nº 633, sala 508, Leblon, Rio de Janeiro - RJ; (vi) Deutsche Bank - Corretora de Valores S.A. - Av. Brig. Faria Lima, 3900, 13º andar, São Paulo-SP; and (vii) BTG Pactual C.T.V.M S.A. - Av. Brig. Faria Lima, 3477, 11º andar, São Paulo-SP.

For additional information, visit our website (www.bhg.net.br/ri) or contact our Investor Relations area.

Rio de Janeiro, August 6, 2014

Luiz Felipe Negreiros de Sá

Chief Financial and Investor Relations Officer
BHG S.A. - BRAZIL HOSPITALITY GROUP

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