Three Regional Groups in Brazil Form Allia Hotels

Bristol, Plaza Inn and Solare Merge to Create a Brand of 40 Hotels

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. October 25, 2010

October 21, 2010 - Three regional hotel groups in Brazil announces the formation of Allia Hotels, the largest 100% national hotel chain in the country. As the result from the alliance between Bristol Hotels, based in Minas Gerais; Plaza Inn Hotels, based in São Paulo and Solare Hotel Group, from Maranhão, the new group bears with already 40 hotels in operation and more than 3,000 rooms and approximately 1,600 employees.

In number of properties, it will be the third largest hotel group in the country, with presence in six states and focused on the economic segment, besides superior hotels and resorts. Performing total revenues of R$ 121 million in 2009, it will reach approximately R$ 150 million in 2010.

The Allia Hotels plans to grow sustainably, such as the Brazilian economy, with the prestige of the three regional brands and under the impulse from the increasing demand for hotels as well as the positive prospects generated by the 2014 World Cup and the Olympics in 2016.

The companies will keep their respective brands, operating under the Allia Hotels group, and will launch the Allia brand for superior and luxury hotels as well. Within two years the alliance between the three companies shall became a complete merge. The company will be headed by Andre Monegaglia along with a board of directors and management committees assuring the best practices of corporate governance.

Targeting the powerful growth of demand, Allia Hotels - an abbreviation of Alliance, and meaning fortune in Latin - already set their expansion plan. Confirmed investments of R$ 450 million by 2014, contracts have already raised from investors and developers. The funds will be invested in 30 new buildings and is expected to capture additional new features to the market.

"This alliance will give us more ability to grow and invest in expansion, at a time when the prospects are very favorable for the hospitality industry and tourism, besides increasing the management capacity of our enterprises," said Andre Monegaglia.

In 2014, the Allia Hotels has plans to have 70 properties. In the same period, direct the staff more than duplicate, to 3,400 employees.

The presidents of Bristol Hotels, Jose Adalto Silva; Plaza Inn Hoteis, Claudio Monegaglia, and Grupo Solare, Rogerio Tavares, began negotiating the alliance has about nine months, aiming to expand the scale of its operations, the range services and the regions of operation.

Several factors counted in favor of the merger of the operations, among them the profile of the properties - facing the average executive standard demand, offering comfort, safety, convenience and an excellent cost vs performance ratio for their guests. The average occupancy rate, which in 2009 reached 62%, should evolve to 65% in 2010.

The three networks will operate initially through partnerships in reservation, Sales, IT and Marketing, with standardization of operations, tools and corporate policies, with economies of scale and synergy.

The structure of the Allia Hotels has five main offices in São Paulo, Ribeirão Preto, Vitoria, Belo Horizonte and Sao Luis, which add to four other regional sales offices located in Rio de Janeiro, Goiânia, Belem and São Jose Rio Preto.

To further increase its sales force, the network also has six regional sales representatives based in Salvador, Brasilia, Fortaleza, Recife, Porto Alegre and Cuiaba, totaling 58 professionals, coordinated by a Steering Committee. All this will allow a capillary and a huge sales management aligned with the most modern techniques of management.