2. 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
3. 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.
4. BHG’s Consolidation Strategy
BHG 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
5. BHG’s Timeline and Announced Deals
BHG 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 09-14
The Hotels managed figures does not include the minority participation in the 3 hotels part of the Everest Hotel Chain; 5
The numbers presented above illustrates the position in the end of each year.
6. 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 + Federal
MT 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
7. 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 Itaguaí
Key
Paraná
TI Maringá
Owned
Managed
Under Development RT = GT = TI = SI =
World Cup Host Cities Areas with established hotels 7
8. Attractive Sector Dynamics
Brazil’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-middle
Source: IBGE, Banco Central do Brasil, FGV, LCA and Santander.
Discretionary Income according to IBGE. 8
9. Attractive Sector Dynamics
Brazil’s booming business activity combined with the country’s unique natural environment creates
favorable 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$1bn for the hotel sector to 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
support investments and construction of hotels.
Domestic Passenger Air Traffic in Brazil
(in million)
79.0
68.3
56.2
47.8
44.4
2014 World Cup and 2016 Olympic Games will consolidate
Brazil as a tourist destination.
2007 2008 2009 2010 2011
Source: IBGE, Ministério do Turismo, Embraer and Research Reports. 9
10. Natural Consolidator
BHG has approximately 8,300 rooms among its owned and managed properties, taking advantages of
synergies of scale in its operations.
Hotel Industry in Brazil Number of Rooms (Jun/12)
Owned Managed
21,028
6,076 Hotels 410,327 rooms
12,876
70.7%
87.9% 8,431
4,172 3,986
2,940 3,391
16.4% 2,930 2,819 2,772
6.0% 12.9% 44% 90%
6.1% 86% 100%
17%
Number of hotels Number of rooms
Independent International chains National chains
Source: Jones Lang La Salle and BHG estimates. 10
11. Economies of Scale
72% of all hotel rooms in Brazil are independently managed, creating the opportunity for post-
acquisition operational turnaround
Golden Tulip Regente Case¹
Main Synergies RevPar (R$)
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
12. Golden Tulip Regente Case
BHG significantly improved the hotel's EBITDA reducing it's multiple and the time required for the
investment's 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 19.7x
2007¹ = EBITDA generated by the former owner.
12
13. 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 - $424.1 6.9x
1) Includes retrofit expenses;
2) Multiple EBITDA = BHG’s EBITDA Share + administration fees after taxes (when applied).
13
14. Greenfield Hotels
We will also build new economic hotels (greenfield projects)
Tulip Inn Model Strategy
► Project model with 140 apartments;
► Construction timeframe of 30 months;
► We conducted a Geographical Study which defined 31
► Including 6 months for licensing and project
target cities as potential markets to be explored;
approval;
► Our strategy is to develop and construct around 5,600
► BHG’s share of the project will usually be: 25%;
new rooms between 2011 and 2016;
► Land Acquisition estimated at 25% of the construction’s
► Total Equity necessary from BHG will be R$ 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
15. 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) 2015²
Itaguaí 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
16. Strong Brands
BHG has an exclusivity agreement with Golden Tulip allowing access to an international distribution
network 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
17. Focused Management Team and Sponsorship
BHG 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
18. Land Bank | Additional Source of Value
Geographic Footprint Invest. Book
Properties States Sqmt PSV*
Value Value¹
BHG’s strategy for the land bank is to monetize the properties Under development
through 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 TBD
Singlehome 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
19. Hotel’s Indicators: 2009 - 2012
The performance of Company's hotel's indicators since 2009, including projections for 2012 and 2014
– when Brazil will host FIFA's 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
20. 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
21. Financial Highlights | 2011
At the end of 2011, the Company reappraised hotels acquired more than 3 years ago in Rio de
Janeiro and São Paulo, which are recorded under property, plant and equipment in the amount of
R$133.5 million. Upon reappraisal by the consulting firm APSIS, a specialist in the reappraisal of
assets, the properties were valued at R$465.9 million. Even so, the difference of R$332.4 million was
not recorded in the Company’s balance sheet,
Annual Data
Indicators 2011 Unadjusted 2011 Adjusted
Portfólio R$ 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 the
Company’s assets, it is clear that BHG is undervalued, with a difference between NAV in 2011
without and with adjustments of 48.5%.
2011 = Price on 12/31/11;
21
22. Investment Case Key Points
BHG has competitive advantages that position it to become the largest and most profitable player in
the 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
