This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Home Inns Group Announces Acquisition Of EJia Express Hotels

SHANGHAI, July 1, 2012 /PRNewswire-Asia/ -- Home Inns & Hotels Management Inc. ("Home Inns Group", NASDAQ: HMIN), a leading economy hotel chain in China, today announced that it has completed an acquisition of 100% ownership of Anhui Youle Fashion Hotel Management Co., Ltd. and Anhui Meibang Hotel Management Co., Ltd. (collectively "eJia Express") for a total of RMB59.8 million (approximately US$9.4 million) in cash.

eJia Express is a regional economy hotel chain in Anhui Province with 13 leased-and-operated hotels and a total of 1,284 rooms, including nine hotels centrally located in the city of Hefei, the provincial capital. All of the 13 eJia Express hotels will be rebranded to Home Inns and this will significantly increase Home Inns' brand presence in the region. The average remaining lease term for the 13 hotels is approximately eight years. Prior to the eJia acquisition, Home Inns Group operated in Anhui Province with 18 hotels under the Home Inns brand and 14 hotels under the Motel 168 brand.

"We are very excited about the completion of the eJia Express acquisition, which allows us to add 13 strategic hotel locations at a highly attractive valuation in the economically vibrant Anhui Province," said Mr. David Sun, Home Inns' Chief Executive Officer. "We expect to quickly integrate these hotels into the Home Inns brand portfolio which includes more than 1,100 hotels in China. We are confident that this acquisition will be additive to our overall business and will help us continue to create long term value for our shareholders."

The per room acquisition cost including conversion cost is expected to be below the average cost of per organically developed Home Inns hotel room. The total cash consideration averages to a per room consideration of approximately RMB47,000, and Home Inns expects to invest less than RMB10,000 per room for the conversion and rebranding of these hotels into Home Inn hotels.  This will occur gradually over the next six months with minimum operational interruption.

About Home Inns

Home Inns is a leading economy hotel chain in China based on the number of hotels and hotel rooms, as well as the geographic coverage of the hotel chain. Since Home Inns commenced operations in 2002, it has become one of the best-known economy hotel brands in China. Home Inns offers a consistent product and high-quality services to primarily serve the fast growing population of value-conscious individual business and leisure travelers who demand clean, comfortable and convenient lodging. Home Inns' ADSs, each of which represents two ordinary shares, trade on the NASDAQ Global Select Market under the symbol "HMIN." For more information about Home Inns, please visit

Safe Harbor

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Any statements in this press release that are not historical facts are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include our anticipated growth strategies; our future results of operations and financial condition; the economic conditions of China; the regulatory environment in China; our ability to attract customers and leverage our brand; trends and

competition in the lodging industry; the expected growth of the lodging market in China; our expected successful consolidation and integration of Motel 168 with our existing operations; and other factors and risks detailed in our filings with the Securities and Exchange Commission. This press release also contains statements or projections that are based upon information available to the public, as well as other information from sources which management believes to be reliable, but it is not guaranteed by us to be accurate, nor do we purport it to be complete. We undertake no obligation to update or revise to the public any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

For investor and media inquiries, please contact:

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.10 -0.56%
FB $118.03 -0.02%
GOOG $698.16 0.35%
TSLA $214.49 -3.60%
YHOO $36.99 2.80%


Chart of I:DJI
DOW 17,721.53 +70.27 0.40%
S&P 500 2,058.63 +7.51 0.37%
NASDAQ 4,738.0360 +12.3970 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs