Dividend Policy

Whereas Article 38 of the Bylaws of Hot√©is Othon S.A.: At year end, the Executive Board must prepare financial statements, forwarding them along with a proposal for allocation of net income, the Board of Directors so that it submits to the shareholders’ ordinary general meeting. Paragraph 1 - By resolution of the Board of Directors, the Company may, subject to the provisions of art. 204 and its paragraphs of Law 6.404/76: a) declare interim dividends to retained earnings or profit reserves existing in last balance, b) lifting balance in less than one year and, based thereon, declare interim dividends, provided that the total dividends paid on these balances do not exceed the amount of capital reserves mentioned in the first paragraph of art. 182 of Law 6.404/76. Article 39 - The income for the year must be deducted before any participation, the accumulated losses and the provision for income tax. Net income should be allocated as follows: a) 5% (five percent) for the formation of the legal reserve until it reaches 20% (twenty percent) of the capital, b) payment of the mandatory dividend under Article 40 hereof; c) up to 25% of net income - adjusted as provided in Article 202 of Law 6.404/76 - for the composition of a Reserve Increase of Share Capital, to meet the replacement of real estate assets, the limited value this reserve to the capital stock upgraded d) the remainder, that destination determine that the Assembly, as provided by § 6 of Article 202 of Law 6.404/76. Sole Paragraph - While the Company enjoy exemption or reduction and income tax, the corresponding provision must be converted into capital reserve. Article 40 - The Company shall distribute as mandatory dividend, in each fiscal year, 25% (twenty five percent) of net income adjusted pursuant to Article 202 of Law 6.404/76.