NOTICE TO THE MARKET

BHG S.A. - Brazil Hospitality Group ("Company"), pursuant to Article 12 of CVM Instruction 358/02, hereby informs its shareholders and the market in general that, through a communication dated and received on August 12, 2014, it was informed by the shareholder Morgan Stanley, its subsidiaries, Morgan Stanley Uruguay LTDA., inscribed in the roll of corporate taxpayers (CNPJ/MF) under no. 05.447.544/0001-10, and Caieiras Fundo de Investimento Multimercado, inscribed in the roll of corporate taxpayers (CNPJ/MF) under no. 95.770.340/00118, that, on August 11, 2014, held in the aggregate, a total of 3.605.983 common shares of the Company, equivalent to 5,7% of the Company's outstanding common shares. Morgan Stanley subsidiaries' position includes 65.200 loaned shares. Morgan Stanley declares that the position herein mentioned was not acquired for the purpose of acquiring control of the Company, but rather is an investment held with no intent of altering the Company's administration, composition of control, or operations.

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Rio de Janeiro, August 12, 2014

Luiz Felipe Negreiros de Sá

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

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