NOTICE TO THE MARKET

Execution of Memorandum of Understanding for Management of theTulip Inn Volta Redonda hotel, to be developed in Volta Redonda (RJ)

In line with best corporate governance practices, BHG S.A. - Brazil Hospitality Group ("BHG" or "Company") hereby informs its shareholders and the market in general that, on September 17, 2014, it executed a Memorandum of Understanding to manage a hotel called the Tulip Inn Volta Redondato be developed in the city of Volta Redonda, state of Rio de Janeiro.

The hotel will consist of a single tower with eight floors and 160 rooms, as well as a restaurant, convention rooms and a gym. The project will be developed by Excellence Empreendimento VR LTDA. and operations are scheduled to begin in 2017.

It will be located in Volta Redonda's Aterrado neighborhood on Avenida Sete de Setembro, close to the city center and the commercial area. There are no comparable hotelsin the vicinity.

Volta Redonda is in the Vale do Paraíba Fluminense region and isalso known as "Steel City". It is 127 km from the city of Rio de Janeiro and 310 km from the city of São Paulo. Given its condition as a regional economic center, it attracts large numbers of people from the surrounding region to make use of its services, commerce and public institutions.

Historically-speaking, the secondary sector has been chiefly responsible for the region's development and is composed of a wide range of major industries, including Companhia Siderúrgica Nacional (CSN);Votorantim's cement factories, CSN Cimentos (CSN Group), Tupi, White Martins' oxygen and nitrogen plant, Indústria Nacional de Aços Laminados (INAL), Companhia Estanífera Brasileira (CESBRA), and S/A Tubonal, as well as small and medium-sized companies in the metal-mechanical, food and clothing sectors.

Rio de Janeiro, September 17, 2014

Luiz Felipe Negreiros de Sá

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

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