Roadshow   Jun 12   Eng
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Roadshow   Jun 12   Eng Roadshow Jun 12 Eng Presentation Transcript

  • Corporate Presentation June/2012
  • Disclaimer The forward-looking statements contained in this presentation are based on the current assumptions and outlook of the Company’s management. Actual results, performance and events may differ significantly from those expressed or implied in these forward-looking statements as a result of several factors such as the general and economic conditions in Brazil and abroad, interest and exchange rates, future renegotiations or pre-payments of liabilities or loans denominated in foreign currency, changes in laws and regulations, and general competitive factors (regionally, nationally or internationally). 2
  • BHG at a Glance Overview Listed on the Novo Mercado segment of Brazil’s third largest hotel Company; BM&FBovespa; Focused on business tourism (three and Traded in the OTC Market in New York under the four-star brands) in areas with high ticker BZHGY. economic activity; Shareholder Structure (04/30/12)² 46¹ hotels throughout Brazil’s main regions, LA HOTELS LLC + with a total of 8,431 rooms; OTHERS = 32.4% GPCP4 = 44.6% BOARD OF 20 hotels under development throughout DIRECTORS & Brazil, which will add approx. 4,000 rooms EXECUTIVES = 1.1% by 2015; Net Revenue of R$ 51.7 mm and Hotel EBITDA of R$ 14.9 mm in the 1Q12; TREASURY = 1.1% 16 properties in strategic locations for ES TOURISM MFC GLOBAL tourism-oriented development along the EUROPE = 5.4% JHL = 5.8% INVESTMENT = Brazilian coast; 9.0%(1) Besides the 46 hotels, we also own a minority interest in the Everest Hotels Chain (3 hotels). 3(2) 42,566,797 common shares.
  • BHG’s Consolidation StrategyBHG has multiple growth drivers… Franchising Development of New Hotels Acquisition of Management of ► Accelerate expansion Hotels Third Parties’ Hotel ► Low penetration ► Increase the scale of ► Absence of major operation and brand companies exposure ► Highly fragmented Fee business ► ► Expertise to ► Entry into the Budget market No overlap with ► develop and Segment ► Old, poorly kept consolidation hotels operate hotels opportunities ► Capacity to ► Increased scale turnaround assets benefits BHG bargain ► Track-record of power with suppliers attractive acquisitions and customers 4 ► Balanced Capital Structure 3 2 1 ... and its goal is to become the largest Hotel company in Brazil 4
  • BHG’s Timeline and Announced DealsBHG is the first listed Brazilian company to operate in the tourism-oriented real estate segment. ► BHG initiated its operations in February 2009, after a merger between: • Invest Tur : A company created in 2007, that raised R$ 945 million in an IPO for the development of 2nd home properties on Brazilian beaches; • L.A. Hotel : A GP Investments company created in January 2008, focused on the business tourism hotel segment. For the years 2012 through 2015, the number of rooms and hotels are based on information already disclosed to the market: 12,480 15% 10,900 10,220 8,836 7,222 65% 14% 5,894 60% 5,293 58% 56% 51% Managed Rooms 58% 70% 42% 40% 35% 18% 42% 49% 44% Owned Rooms 30% 2009 2010 2011 2012 2013 2014 2015 Hotels Under Management: 31 34 37 48 55 59 66 Fully Owned 11 15 16 16 16 16 16 Partially Owned 2 3 5 9 16 18 18 % Third-Party Properties 18 16 16 23 23 25 32 CAGR 09-14The Hotels managed figures does not include the minority participation in the 3 hotels part of the Everest Hotel Chain; 5The numbers presented above illustrates the position in the end of each year.
  • Geographic Footprint – In Operation 2012 2 1 1 1 Total of 46 hotels: PA 1 CE MA 6 2 16 owned, 7 mixed; 1 23 managed. RN 1 Minority Interest¹ in 3 hotels; 20 hotels under PE 1 development. 1 BA 1 3rd largest hotel chain in Brazil, with approx. 1 8,400 rooms, located in 17 States + FederalMT 1 MG 1 District.GO 1 ES 1 Tulip Inn: 21 hotels / 2,473 rooms&DF 2 Golden Tulip: 2 19 hotels / 4,217 rooms 1 RJ 3 Royal Tulip: PR 3 hotels / 1.201 rooms 4 1 Txai: 5 1 hotel / 40 rooms SP RS 1 3 Soft Inn: 2 hotels / 474 rooms World Cup Host Cities Areas with established hotels 6
  • Geographic Footprint – Under Development Palmas Maranhão GT Palmas Gran Solare TI Palmas SI Imperatriz Fortaleza TI Sobral Maceió Gran Solare Belém SI Maringá 20 hotels under RT Bolonha development, with a total of aprox. 4,000 GT Marabá Belo Horizonte rooms until 2015 TI Hangar GT Belo Horizonte TI Marabá TI Savassi TI Castanhal Rio de Janeiro SI Hangar TI Angra dos Reis Campo Grande TI Campos TI Campo Grande TI ItaguaíKey Paraná TI Maringá Owned Managed Under Development RT = GT = TI = SI = World Cup Host Cities Areas with established hotels 7
  • Attractive Sector DynamicsBrazil’s favorable macroeconomic conditions should drive demand for business hotels. GDP Growth Growth of Discretionary Income 7.5% Estimates 15.5% 13.5% 12.7% 5.7% 6.1% 5.2% 10.7% 10.8% 4.0% 4.3% 4.5% 3.2% 3.7% 2.7% 5.4% 2.7% 1.3% 1.2% -0.6% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2005 2006 2007 2008 2009 2010 Income Destination Unemployment Rate(in million) 13% Estimates 12.3% 200 1.1% 11.4% 175 179 11% 31 7.5% 9.8% 9.9% 13 20 9.3% 9% 66 7.8% 8.1% 93 113 4.6% 6.7% 7% 6.6% 6.8% 6.0% 96 66 56 (4.4%) 6.5% 5% 2002 2008 2014 CAGR: 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2002-2014 High/Upper-middle Middle Low/Lower-middleSource: IBGE, Banco Central do Brasil, FGV, LCA and Santander.Discretionary Income according to IBGE. 8
  • Attractive Sector DynamicsBrazil’s booming business activity combined with the country’s unique natural environment createsfavorable dynamics for tourism. Relevant Upcoming Events Arrivals of Foreign Tourists in Brazil (in million) ► Important events in Brazil: Rio + 20 (2012), Confederation Cup (2013), World Youth Day (2013), World Cup (2014), Copa América (2017) and Olympic Games (2016); 11.1 10.2 9.3 8.1 8.9 8.6 7.8 7.1 ► Massive investments, over R$110bn, in infrastructure to adopt 5.4 6.4 5.0 the stadia and to prepare host cities; ► BNDES launched a credit line of R$1bn for the hotel sector to 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 support investments and construction of hotels. Domestic Passenger Air Traffic in Brazil (in million) 79.0 68.3 56.2 47.8 44.4 2014 World Cup and 2016 Olympic Games will consolidate Brazil as a tourist destination. 2007 2008 2009 2010 2011Source: IBGE, Ministério do Turismo, Embraer and Research Reports. 9
  • Natural ConsolidatorBHG has approximately 8,300 rooms among its owned and managed properties, taking advantages ofsynergies of scale in its operations. Hotel Industry in Brazil Number of Rooms (Jun/12) Owned Managed 21,028 6,076 Hotels 410,327 rooms 12,876 70.7% 87.9% 8,431 4,172 3,986 2,940 3,391 16.4% 2,930 2,819 2,772 6.0% 12.9% 44% 90% 6.1% 86% 100% 17% Number of hotels Number of rooms Independent International chains National chainsSource: Jones Lang La Salle and BHG estimates. 10
  • Economies of Scale72% of all hotel rooms in Brazil are independently managed, creating the opportunity for post-acquisition operational turnaround Golden Tulip Regente Case¹ Main Synergies RevPar (R$) 212.0 Commercial Daily Rate of Daily Rate of R$ 180; R$ 278; 170.0 OCC of 66% OCC of 76% ► Better allocation of clients among hotels, minimizing sales losses; 120.0 ► Marketing synergies strengthening brands; ► National / international sales force - call centers in Brazil and abroad; ► Negotiating power with travel agencies and tour operators; ► Scale to serve corporate clients in various regions. 2007 2009 2011 Operational / Administrative EBITDA (R$ million) ► Professional administration instead of family managed; Hotel’s Acquisition (fev/2008) 10.4 ► Centralized administrative operations; ► Joint negotiation of supply contracts; ► IT systems that allow major cost reductions; 6.3 ► Benchmark of best operational practices among the various hotels; 2.6 ► Capacity for attraction and retention of talent. Proven capacity to integrate and turnaround targets hotels 2007 2009 2011(1) 2008 - February 2011: 231 rooms in operation; In March/2011: 327 rooms in operation. 11
  • Golden Tulip Regente Case BHG significantly improved the hotels EBITDA reducing its multiple and the time required for the investments capital return since it’s acquisition in fev/08. Total Invested Value EBITDA (R$ million) 2012 13.6 Estimate 94.9 88.6 2011 10.4 2009 6.3 2007¹ 2.6 61.8 51.2 EBITDA Multiples 2012 7.0x Estimate 2011 8.5x 2009 9.8x 2007 2009 2011 2012 2007 19.7x2007¹ = EBITDA generated by the former owner. 12
  • Acquisition Track Record and Pipeline • BHG has a solid track record of acquiring operating properties and a robust pipeline. Acquisition Track Record Acquisition Pipeline Tulip Inn Hangar Share Price ¹ Mult.² Golden Tulip and Soft Inn Projects Rooms (%) (R$ million) 2013 Recife Palace Hangar Rooms: 299 Rooms: 132 Hotel A 143 100% $105.0 9.1x (Rio de Janeiro) Hotel B 189 100% $199.1 9.3x Everest Golden Tulip (Rio de Janeiro) Rooms: 181 Connext (8,5%) Hotel C Rooms: 127 171 100% $60.0 7.1x (Porto Alegre) Hotel D 149 100% $18.5 5.3x (Maceió) Batista Campos Soft Inn “Plus” and Nazaré Batista Campos Hotel E Rooms: 190 Rooms: 258 202 20% $9.3 5.8x (Fortaleza) Hotel F 243 20% $11.4 6.3x (São Luis) Intercontinental Sofitel Hotel G 140 100% $17.0 6.8x Rooms: 418 Rooms: 388 (Joinville) Hotel H 128 25% $3.8 5.4x (Uberlândia)316 million invested in 2011 TOTAL 1,365 - $424.1 6.9x 1) Includes retrofit expenses; 2) Multiple EBITDA = BHG’s EBITDA Share + administration fees after taxes (when applied). 13
  • Greenfield HotelsWe will also build new economic hotels (greenfield projects) Tulip Inn Model Strategy ► Project model with 140 apartments; ► Construction timeframe of 30 months; ► We conducted a Geographical Study which defined 31 ► Including 6 months for licensing and project target cities as potential markets to be explored; approval; ► Our strategy is to develop and construct around 5,600 ► BHG’s share of the project will usually be: 25%; new rooms between 2011 and 2016; ► Land Acquisition estimated at 25% of the construction’s ► Total Equity necessary from BHG will be R$ 100 cost; million, considering that we will leverage 60% though ► SPE 60% with Long Term debt (BNDES); BNDES and have partners from the remaining portion. ► Debt Cost: TJPL + 3,8% ► Term:12 years with 4 years of interest grace period Tulip Inn Double Room (Project) Tulip Inn Double Room (Preview) 14
  • Done Deals & Pipeline | Greenfield Hotels Done Deals Pipeline Invest.¹ Mult. Invest.¹ Mult. Projects Rooms Share (%) Launch Projects Rooms Share (%) Launch (R$ mm) 2015² (R$ mm) 2015²Itaguaí Uberlândia 200 $6.5 53% 2013 3.5x 302 $3.0 10% 2013 5.5x(Rio de Janeiro) (MG)Campos Porto Velho 160 $20.0 100% 2013 7.8x 200 $12.0 51% 2015 5.8x(Rio de Janeiro) (RO)Maringá Marabá 228 $9.5 51% 2013 3.4x 200 $12.0 51% 2015 6.6x(Paraná) (PA)Palmas São José do 140 $5.0 50% 2013 2.7x 140 $10.0 51% 2014 6.2x(Tocantins) Rio Preto (SP)Belo Horizonte Sorocaba 240 $16.7 25% 2014 7.3x 140 $10.0 51% 2014 6.2x(Minas Gerais) (SP)Sobral Campinas 120 $3.0 33% 2013 2.8x 140 $10.0 51% 2014 6.2x(Ceará) (SP)Angra dos Reis Macaé 120 $3.6 33% 2014 2.6x 150 5.0 25% 2014 5.0x(Rio de Janeiro) (RJ)Campo Grande Resende 140 7.0 33% 2014 4.9x 140 5.0 25% 2014 5.0x(MS) (RJ)TOTAL 1,348 $71.3 - - 4.4x TOTAL 1,412 $67.0 - - 5.8x• The Done Deals listed above only illustrates the Tulip Inn Greenfield Projects where BHG holds equity participation.*Investment¹ = BHG’s participation share in the deal; Multiple 2015² = Considering BHG´s share on the hotel´s EBITDA + management fees. 15
  • Strong BrandsBHG has an exclusivity agreement with Golden Tulip allowing access to an international distributionnetwork and guaranteeing operating standards in its hotels. Description Benefits for BHG ► Golden Tulip Hospitality is part of an ► BHG – Golden Tulip Agreement: international hotel company with more than – Exclusive use of the Golden Tulip brand in 1,000 hotels in 40 countries South America ► In July of 2009, Golden Tulip was acquired – Benefits in royalty and international by Starwood Capital, becoming the world’s marketing fees 8th largest hotel chain – Access to an international distribution ► Brands: network and call centers around the world – 5 star: – Use of Value Drivers, Golden Tulip’s commercial tools – 4 star: – Access to Golden Tulip miles program (Flavours) – 3 star: ► Budget: ► The Soft Inn brand allows BHG to operate in every segment of the Hotel Industry, acessing all kinds ► Group recently acquired by BHG of guest profiles. ► 6-star resort in Itacaré, BA ► Use of the Txai brand in real estate development ► Established tourist destination with one of projects the best resorts in the country and the ► Leverage of the Txai brand in condo-hotel and world villa/home launches ► BHG-owned brand ► Synergies with Txai projects 16
  • Focused Management Team and SponsorshipBHG has a team of top executives with broad experience in various industries. Tier 1 Management Team Pieter van Voorst Vader CEO - Master degree in International Business (Florida Int. Univ.) ► Latin America’s leader in private equity - Bachelors degree in Hotel Management (FIU e HHS Hague) - CEO of Brazil Fast Food Corporation - Occupied different positions in marketing and sales of Shell ► Raised more than US$4 billion from private equity Ricardo Levy investors CFO & IRO - MBA in Management (Coppead) - Bachelors degree in Management (PUC-RJ) ► Concluded 48 investments in 15 different sectors - Former financial superintendent of Light (energy provider) Reginaldo L. Olivi ► In May of 2006, became the first private equity firm to list Operations Officer on a Latin American stock exchange - Bachelors degree in Economics (PUC-SP) - Director of Grupo Chambertin Hotels Administration - Director of Olivi Advising and Consultancy ► Counts on a group of experienced professionals André Luiz D. Lameiro recognized by the market for their expertise Commercial Officer - Bachelors degree in Economics (FMV) - Bachelors degree in Marketing (Amnnhembi) - Director of Grupo Chambertin Hotels Administration Fabrício Muzzio Director of Investments - Bachelors degree in Hotel Management (Cornell University) - Bachelors degree in Management (Hotel Man. Sch. Les Roches) - M&A manager of Odebrecht - M&A director of Westmont Hospitality Group 17
  • Land Bank | Additional Source of Value Geographic Footprint Invest. Book Properties States Sqmt PSV* Value Value¹BHG’s strategy for the land bank is to monetize the properties Under developmentthrough environmental licenses and partnerships. Txai Terravista BA 72 15,9 9,4 63,0 1 long-term land bank Txai Ganchos SC 530 8,1 3,1 117,5 2 long-term land banks Conduru BA 430 12,7 10,3 26,1 2 properties for Wind Farm Rent development Long Beach CE 54.014 13,1 8,5 1.75% 8 properties for Port Beach PI/MA 8.332 13,8 5,9 TBD development 2 properties for Other properties development Canavieiras I BA 569 26,6 8,2 - Txai Paraty RJ 480 12,3 4,8 - 1 Project under development. 50% sold on the 1st sales lot. Canavieiras II BA 577 16,0 8,4 - Greenfield areas States where BHG operates Carro Quebrado AL 1.265 22,6 7,6 - Invest. Book Negotiated Deep Beach RJ 2.260 30,1 12,3 - Properties States Sqmt Value Value¹ Value Txai Salvador BA 5 6,9 2,7 - Done Deals Canavieiras III BA 102 4,8 1,3 - Kino SP 7.200 45,4 26,8 52,4 Wind Beach CE 11.254 9,0 5,4 - Txai Itacaré BA - - 18,5 18,5 Nossa Shra. Vit. BA 729 10,8 4,6 - P. Camaragibe AL 1.630 56,6 32,4 TBDSinglehome BA 3.695 28,7 25,1 TBD Total Book Value - 288,0 159,0 -* Values in R$ million. ¹ Book Value considering only BHG’s share. TBD = To Be Defined. PSV* = Estimated PSV. 18
  • Hotel’s Indicators: 2009 - 2012The performance of Companys hotels indicators since 2009, including projections for 2012 and 2014– when Brazil will host FIFAs World Cup. Occupancy Rate (%) Daily Rate (R$) Estimate 262.0 Estimate 67.3% 235.5 66.9% 194.5 229.9 65.1% 64.2% 2009 2010 2011 2012 2009 2010 2011 2012 RevPar (R$) 189.4 Estimate 157.7 125.0 153.8 2009 2010 2011 2012 19
  • Historical Financial Highlights Driven by the maturity of the acquired hotels, BHG expects a solid growth in EBITDA and Net Operating Revenue for 2012. Net Operating Revenue (in R$ mm) Hotel’s EBITDA (in R$ mm) and Margin (%) 33.0 176.6 121.8 27.1 25.1 58.2 76.9 33.0 19.3 2009 2010 2011 2009 2010 2011 Company’s EBITDA (in R$ mm) and Margin (%) Net Profit (in R$ mm) 23.7 9.6 41.9 8.7 2.6 (6.2) 10.7 (10.9) (14.2) 2009 2010 2011 2009 2010 2011 20
  • Financial Highlights | 2011At the end of 2011, the Company reappraised hotels acquired more than 3 years ago in Rio deJaneiro and São Paulo, which are recorded under property, plant and equipment in the amount ofR$133.5 million. Upon reappraisal by the consulting firm APSIS, a specialist in the reappraisal ofassets, the properties were valued at R$465.9 million. Even so, the difference of R$332.4 million wasnot recorded in the Company’s balance sheet, Annual Data Indicators 2011 Unadjusted 2011 Adjusted Portfólio R$ million 885.5 1,217.8 Hotels R$ million 727.3 1,059.7 Landbank R$ million 158.2 158.2 Net Debt R$ million (199.6) (199.6) NAV R$ million 685.9 1,018.2 No. of Shares Million 41.1 41.1 NAV/shares R$ 16.70 24.79 Share Price R$ 15.50 15.50 % of NAV % 92.8% 62.5%When considering only the calculation of Net Asset Value (NAV) using the new market value of theCompany’s assets, it is clear that BHG is undervalued, with a difference between NAV in 2011without and with adjustments of 48.5%.2011 = Price on 12/31/11; 21
  • Investment Case Key PointsBHG has competitive advantages that position it to become the largest and most profitable player inthe Brazilian hotel industry. 1 Leadership Position and Scalability 2 Natural Consolidator 3 Strong Brands 4 Focused Management Team and Sponsorship 5 Land bank: Additional Source of Capital 6 Attractive Sector Dynamics 22
  • Financial Highlights1Q12
  • Financial Highlights | 1Q12 Hotel’s Indicators – SSS¹ Hotel’s EBITDA (R$ mm) and margin (%) – SSS¹ 258.3 230.3 36.6% 216.1 34.1% 164.5 31.8% 155.8 142.1 65.8% 67.7% 63.7% 15.8 12.9 13.9 1Q11 4Q11 1Q12 1Q11 4Q11 1Q12 RevPar (R$) Average Daily Rate (R$) Occupancy (%) Hotel’s Indicators Hotel’s EBITDA (R$ mm) and margin (%) 261.8 35.0% 239.2 32.4% 225.6 28.8% 160.2 161.1 147.4 67.0% 18.8 65.3% 61.5% 14.9 13.2 1Q11 4Q11 1Q12 RevPar (R$) Average Daily Rate (R$) Occupancy (%) 1Q11 4Q11 1Q12(1) The 1Q12 results consider the same base of owned hotels in 1Q11, totaling 2,533 owned rooms (“Same Store Sales”). 24
  • Financial Highlights | 1Q12 Gross Operating Revenue (R$ mm) Net Operating Revenue - NOR (R$ million) 60.2 53.8 57.4 51.7 45.0 40.8 71.6% 74.9% 74.2% 24.6% 20.9% 21.3% 4.5% 3.8% 4.2% 1Q11 4Q11 1Q12 1Q11 4Q11 1Q12 Management Fees F&B Room RevenueBHG’s EBITDA (R$ mm) and EBITDA margin(%) Net Profit (R$ million) 31.1 22.0 17.7 16.7 11.4 7.2 1Q11 4Q11 1Q12 25
  • Financial Highlights | 1Q12BHG has a balanced capital structure, key for its strategy of consolidating the hotel industry. Net Operating Revenue BHG – 1Q12 (in R$ mm)(R$ thousand) Asset 53.8 51.7 Hotels portfolio 727.3 40.8 39.8 42.3 # of properties* 23 35.3 37.2 29.0 Landbank areas 158.4 18.3 21.3 22.1 16.8 # of properties 16 Balance Sheet 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Total Cash & Cash Equivalents 27.3 Hotel´s EBITDA Total Debt 262.0(R$ thousand) Net Debt 234.7 18.8 14.9 Net Equity 725.8 14.1 13.2 12.2 11.3 10.5 6.6 6.1 4.8 4.5 4.2 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12* Includes owned and partially owned hotels. 26
  • Financial Highlights | 1Q12The hotels operation presented a Net Revenue of R$51.7 mm and EBITDA of R$14.9 mm in 1Q12.Company’s EBITDA reached R$ 14.9mm and a Net Loss of R$ 2.4 mm. BHG (R$ million) ∆% (1Q12 ∆% (1Q12 1Q12 4Q11 1Q11 X 4Q11) X 1Q11) Net Revenues 51.7 53.8 40.8 -3.8% 26.8% (-) Cost of Services (15.9) (16.1) (12.4) -1.1% 28.2% (-) Hotel Adm. Exp. (14.8) (13.4) (10.0) 10.7% 47.9% (-) Maintenance (2.3) (1.8) (1.9) 25.8% 22.8% (-) Marketing and Commercial Exp. (3.9) (3.7) (3.3) 4.6% 16.9% HOTEL - EBITDA 14.9 18.8 13.2 -20.9% 12.5% (+) Rev. from Non - Ope. Prop. 3.2 5.0 - n.m. n.m. (-) Administrative Expenses (5.3) (5.5) (4.2) -3.1% 27.3% (+/-) Real Estate Op. Expenses (1.3) (1.6) (1.8) -15.4% -26.4% BHG - EBITDA 11.4 16.7 7.2 -32.2% 57.3% (+/-) Depre./Amort. (6.1) (4.0) (3.5) 50.2% 74.0% (+/-) Financial Result (7.9) (6.4) (0.6) 23.1% 1137.4% (+/-) Others 2.0 1.2 6.7 n.m. n.m. (+/-) Minority Interest 0.3 0.3 0.2 0.9% 32.1% (-) Taxes and Social Cont. (2.3) (4.1) (3.8) -44.7% -40.7% Net Profit/Loss (2.5) 3.7 6.3 -169.5% -140.7% 27
  • EBITDA Margin and Business Mix EBITDA Margin(1) Lodging Corps Lodging REITs 70% 64% Full-Service Select-Service 60% 50% 40% 34% 2011 29% 27% 27%Results 27% 29% 29% 27% 30% 24% 21% 23% 25% 19% 18% 18% 19% 20% 15% 15% 14% 11% 10% 4% 0% LHO DRH HST RLJ CLDT HT INN Business Mix (EBITDA) (1) 100% 13% 9% 8% 24% 17% 25% 24% 80% 26% 19% 38% 56% 72% 68% 60% 83% 32% 91% 100% 100% 100% 100% 100% 100% 100% 100% 40% 87% 75% 66% 57% 20% 45% 44% 35% 28% 32% 17% 9% 0% Managed/Franchised Owned Others1. Reflects full year 2010 results, except where noted;Source: Barclays. 28
  • Corporate Overhead 2011 Overhead as % of Enterprise Value 14% 12% 11.4% 10% 8% 6% 5.0% 3.9% 2011 4% 2.9% 2.8% 2.8% Results 2.3% 2.1% 1.9% 2% 0.9% 0.8% 0.8% 0.7% 0.7% 0.5% 0% 2011 Overhead as % of Revenue 40% 34% 30% 20% 18.0% 2011 Results 11.6% 11.3% 10.0% 10% 7.3% 7.1% 6.0% 5.1% 3.9% 3.4% 3.2% 2.7% 1.7% 1.4% 0% (1)Source: Barclays. 29
  • Capital Market Performance | 2012Comparative between the IMOB (real estate) and IBOV indexes, both related to BM&FBovespa, andthe Companys equity (BHGR3) considering the period of 2009 – up to today¹. 2009 - 2012 Moving Average (12M) IMOB IBOV BHG 152% 2.0% 114% -5.2% -7.1% 54% IMOB IBOV BHG Jan/09 Abr/12 ∆% (2009-2012) Apr/11 Abr/12 ∆% (12M) BHGR3 (R$) 10.80 23.08 114% BHGR3 (R$) 22.70 23.08 2.0% IBOV (ths) 40.20 61.82 54% IBOV (ths) 69.26 61.82 -5.2% IMOB (ths) 0.32 0.83 152% IMOB (ths) 0.94 0.83 -7.1%¹Today = Stock price on 04/30/12;Source: Bloomberg. 30
  • Contacts Peter van Voorst Vader (CEO) +55 (21) 3545-5457 ri@bhg.net Ricardo Levy (CFO & IRO) +55 (21) 3545-5457 ri@bhg.net 31